A highly complementary alliance aimed at accelerating profitable growth, strengthening innovation, and expanding development opportunities across the North American market
Electrolux Group has announced that it has entered into agreements with Midea Group to establish a highly complementary long-term strategic partnership in Food Preservation (refrigeration) manufacturing and sales, and Fabric Care (laundry) manufacturing in North America. The partnership will strengthen the Group’s product offering in Food Preservation and Fabric Care through innovation, improved cost competitiveness and increased operational flexibility. It is expected to commence in the third quarter of 2026 and will aim to create a stronger platform for innovation, product development, and deliver value to customers and consumers in North America.
The partnership with Midea Group is expected to accelerate the transformation of Electrolux Group’s North American business, strengthening its ability to support long-term profitable growth. Midea Group is a global, publicly listed smart home solutions and commercial and industrial solutions provider with significant R&D capabilities, headquartered in China. A new operating model will be introduced across selected parts of Electrolux Group’s North American operations. It will support the Group’s continued investments in consumer-centric innovation, including the rollout of advanced digital product features.
«This partnership marks a major milestone in the execution of Electrolux Group’s strategy and puts us in a position to accelerate profitable growth. It enables us to continue to invest in sustainable, consumer-centric innovations to serve our customers and consumers with even stronger product offerings in North America» said Yannick Fierling, President & CEO of Electrolux Group. The partnership will include shared manufacturing expertise benefiting from joint operational capabilities.
Structure of the partnership
- Sales Joint Venture (“JV”) for Food Preservation product and commercial strategies in North America
Electrolux Group and Midea Group will jointly co-develop and sell Food Preservation products for North America through a sales JV, in which each company will hold 50% of the shares. The sales JV will manage product and commercial strategies in North America across Electrolux Group’s and Midea Group’s product brands. Electrolux Group and Midea Group will work together to develop a full line of innovative, differentiated products for both companies’ brands, providing customers and consumers with a broad array of choices. The sales JV is expected to begin operations in the third quarter of 2026.
- Manufacturing JV for Food Preservation in Juarez (Mexico)
Electrolux Group and Midea Group will jointly operate the Food Preservation factory in Juarez, which is expected to begin in the third quarter of 2026. Midea Group will purchase 65% of the legal entities holding the operational assets associated with Food Preservation in Juarez, and Electrolux Group will retain 35%. Electrolux Group’s Fabric Care operations in Juarez will be carved out prior to closing of the transaction and will continue to serve the Group exclusively.
- Manufacturing JV for Fabric Care in Anderson (South Carolina, United States)
Electrolux Group and Midea Group will jointly operate the factory in Anderson, which will be repurposed from a Food Preservation factory into a Fabric Care factory. A manufacturing JV will be established that will own and operate the Anderson factory, with Electrolux Group holding 55% and Midea Group holding 45% of the shares. The current Food Preservation production is expected to be phased out by July 2026, with the Fabric Care production expected to commence in the first half of 2027. The JV agreements have an initial term of 15 years that is automatically extended with consecutive 10-year periods, unless terminated three years in advance by either party. The manufacturing facilities in Springfield, Tennessee (Food Preparation), Kinston, North Carolina (Dish Care) and Juarez, Mexico (Fabric Care) will continue to be operated by Electrolux Group.
