Electrolux to close Quebec plant

December 15, 2010 | 14:23

(0) user say

Global household appliance company Electrolux on Tuesday announced it was closing its appliance manufacturing plant in Quebec, putting 1,300 out of work.

photo:article.wn.com

Production of cooking appliances would be moved from the facility in a suburb of Montreal to a lower-cost facility starting in 2012, Billy Benson, vice president of Electrolux Major Appliances North America's operations.

The plant will be shuttered at the end of 2013, he added, citing "competitive factors" for the decision.

Swedish-based Electrolux is the second-biggest household appliance group in the world after the US firm Whirlpool.

The company achieves 37 per cent of its sales in Europe and 34 per cent in North America, but sees its strongest growth in emerging markets.

The sector has been marked for many years by a stream of restructuring moves because global sales were easing and competition from low-cost regions rising.

Electrolux has closed many sites recently, in France, Italy, Spain and the United States, and also in Russia and in China.

Benson noted that many major appliance manufacturers have reduced their cost structures by establishing cooking product manufacturing facilities in lower cost markets.

"Apart from the challenges of the recession, consumers are demanding competitively priced products featuring the latest technologies, requiring manufacturers to continually reinvest in product innovation while managing costs," he said.

AFP

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional