Electrolux to obtain $70 million charge for US overhaul
Swedish appliance maker Electrolux stated that its North American business will obtain $70 million in Q4 as part of moving into a new facility in South Carolina.
The new facility in Anderson, South Carolina is set to replace manufacturing in St. Cloud, Minnesota and other facilities in Anderson, driving Electrolux to invest $350 million in new product platforms.
The company expects low operating income due to the previous quarters’ accounting adjustments, as well as reduction in inventory by a U.S. customer.
Electrolux’s new program of investment and streamlining measures is created to generate 3.5 billion crowns ($369.59 million) of annual cost savings, with full effect from 2024.
Anderson’s capacity issues are set to be resolved gradually in the first half of 2020, the Swedish company said.