The Electrolux Group is planning investments of approximately USD 500 million in its U.S. manufacturing operations, stepping up a strategic initiative to drive profitable growth in North America with new lines of innovative Frigidaire kitchen products. The company also said it will consolidate freezer production into its Anderson, South Carolina refrigeration facility. The announcement entails modernizing and expanding the manufacturing operation in Springfield, Tennessee for approximately USD 250 million, including a new line of freestanding cooking products. This adds to a previously decided investment of approximately USD 250 million in a new range of products and manufacturing processes at the Anderson facility. The two investments, in combination with others, will provide a new range of innovative kitchen products tailored for the Frigidaire consumer. As a result of the consolidation into Anderson, the company will cease production at its St. Cloud, Minnesota facility. Production is expected to continue through 2019. The company will take a restructuring charge of approximately USD 75 million in the first quarter of 2018. “We are committed to the Frigidaire brand, our U.S. manufacturing base and are investing approximately $500 million in our business’ growth areas while also simplifying our operations – said Alan Shaw, Head of Electrolux Major Appliances North America -. This is a difficult announcement for our Minnesota teammates. We are committed to supporting them and are announcing this two years in advance to provide transition time”.
