Tag Archives: Electrolux

Mass Layoff Affecting 800 Workers in Electrolux Jászberény Plant

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Electrolux will downsize the production of vacuum cleaners and refrigerators in Jászberény, Hungary. The decision will impact about 800 employees. At the same time, the company has announced it will invest EUR 100 million for automation and digitalization in its Nyíregyháza plant, also in Hungary. In reaction to the announcement, the Finance Ministry has said that it keeps a close eye on the fate of the employees.

Electrolux announced in January that it would significantly reorganize its production to improve efficiency. As a result of the overview, the company has decided the closure of the Jászberény plant.

Electrolux Group aims to boost competitiveness by outsourcing current vacuum cleaner production in Jászberény to external partners during 2020, the company announced. Outsourcing the production of vacuum cleaners, chest freezers, and combi-top refrigeration products currently produced in the plant, will impact approximately 800 Electrolux employees.

In the announcement, Managing Director Electrolux Lehel Hungary Sándor Gönczy, said they recognized the restructuring of their operations in Jászberény would be challenging for many of their people.

“We are proud of their expertise and achievements, and our main concern now is to support our impacted colleagues.”

“We are going to approach the local works council, and we trust that we’ll be able to reach socially mindful and fair solutions for our employees,” added Gönczy.

There has been no mass layoff of similar amplitude yet this year in Hungary, and in fact, according to the National Public Employment Services data for July, the number of people affected by collective layoffs did not exceed 800 in any given month, mfor.hu reports. The unemployment rate could increase by up to 10% in the county due to the decision.

After the company announced the downsizing, the Finance Ministry has said that it is closely monitoring the fate of employees of the Electrolux plant in Jászbereny as well as examining the immediate relocation of workers affected by the layoff.

The Electrolux Group also announced on Tuesday a planned investment of approximately EUR 100 million in its Nyíregyháza refrigeration production plant between 2020 and 2023. This is the largest Electrolux manufacturing investment in Hungary since the company started its operations in Hungary in 1991.

The Electrolux Group’s refrigeration manufacturing operations will focus on high-end categories, such as built-in and combi-bottom appliances that are in increasing demand by consumers across Europe.

Electrolux Q2 Interim Report 2019:

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Highlights of the second quarter of 2019

Net sales amounted to SEK 31,687m (31,354). Sales decline of 2.7%, driven by lower volumes.
Operating income amounted to SEK 1,619m (827), corresponding to a margin of 5.1% (2.6). The comparison period included non-recurring items of SEK -818m.
Price increases fully offset the headwinds from higher raw material costs, trade tariffs and currency as well as lower volumes. Mix improvements mitigated higher investments in marketing and R&D.
Operating cash flow after investments amounted to SEK 384m (1,805).
Income for the period increased to SEK 1,132m (517), and earnings per share was SEK 3.94 (1.80).
The Board has reconfirmed its plan to propose to the shareholders that the Professional Products business area is distributed to the shareholders with the aim to achieve listing on the Nasdaq Stockholm during the first quarter of 2020 or, at the latest, the second quarter of 2020.
President and CEO Jonas Samuelson’s comment

A strong focus on innovation to improve consumer experiences is our guiding compass and a key driver for profitable growth. It is therefore encouraging to see that we once again have a favorable earnings impact from improved mix by selling more high-margin products and we continue to invest in marketing to support the major launches we have this year. Concurrently, price increases continued to offset strong headwinds from higher raw material costs, trade tariffs and currency, and in this quarter also from volume decline. The lower volume was mainly caused by the U.S. private label sales drop. Underlying operating income was in line with last year.

The earnings for our operations in Europe and Professional Products were once again solid and operating income in Latin America increased significantly. In North America, positive price and mix offset higher costs from raw materials and trade tariffs but not fully the volume decline. The business area Asia-Pacific, Middle East and Africa was impacted by currency headwind and weak sales in Australia.

We re-confirm our market view for 2019 with the exception of Southeast Asia where we now estimate the demand in the region to be slightly positive.

Based on current trade tariff levels, we estimate the negative year-over-year impact from raw materials, trade tariffs and currency to be approximately SEK 1.4-1.6bn in 2019, compared to the previous estimate of approximately SEK 1.7-1.9bn. In the first half of 2019, price has fully offset this headwind and we expect that to be the case also for 2019 as a whole. The uncertainty on trade tariffs continues to impact our visibility.

The preparations for the intended separation and subsequent listing of the Professional Products business area are proceeding according to plan. As the previously announced reasons for the separation are still considered valid the Board has reconfirmed its plan to propose to the shareholders that the Professional Products business area is distributed to the shareholders with the aim to achieve listing on the Nasdaq Stockholm during the first quarter of 2020 or, at the latest, the second quarter of 2020.

Electrolux 100th year is a product launch intensive year and I believe our innovation power will continue to strengthen our competiveness. In addition to significant kitchen range launches in Europe and Asia-Pacific, we have sharpened our offering by being the first to bring Air Fry technology built in to the cooker to the North American market. Looking ahead, I am confident that we are well positioned to create value through our profitable growth strategy.

Electrolux invests 130 million euros in Susegana

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After an agreement with the unions, Electrolux formalizes an investment of around 130 million euros in automation, digitalization and innovation at its production site in Susegana (Treviso).

The investment, which is expected to be completed in 2022, includes two new assembly lines and resources for product and process development. This will support the competitiveness of the Electrolux built-in products in the refrigeration sector and will allow the company to achieve the best levels of performance in the context of the upcoming European regulation on the energy label. The update will also bring ergonomic improvements to workstations throughout the site.

Electrolux wins two Singapore Good Design Mark Awards

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Electrolux has won two prestigious Singapore Good Design Mark Awards (SG Mark) for its Multi Door Refrigerator and UltimateCare™ 500 washing machine and dryer set.

SG Mark Award winners (L-R) Swaminathan Iyer, Eric Leong, Daniel Chee, Eunice Cheng from Electrolux Design Team

The Electrolux Design team were recently awarded at a ceremony in Singapore for their human-centric designs that offer outstanding consumer experiences and improve everyday living.
Electrolux Chief Design Officer Pernilla Johansson said: “We’re proud that these products – designed to make life better and more sustainable for consumers – have been awarded the prestigious SG Mark. Congratulations to all those involved.”

The winners
The Electrolux NutriFresh™ Multi Door Refrigerator features microclimate zones and Smart Split doors which reduce climate fluctuations and energy waste, creating an environment that allows it to preserve the quality of a wide array of food.
Different food types require unique storage conditions to stay fresh. To keep meat and fish fresh, many people resort to deep freezing but this Electrolux refrigerator comes with the UltraChill setting at -2°C which keeps items very cold but not frozen. This helps to preserve the texture of food for longer and reduces the need to defrost.

The new NutriFresh™ refrigerator also comes with a FlexFresh drawer, an optimal storage compartment with five temperature settings (-23°C to +7°C). This enables the user to store all types of food – from cheese and wine, meat and seafood, to cold drinks and frozen items – at the right temperature to help them stay fresh.

For example, deli snacks such as cold cuts and cheese should be kept at a temperature of +3°C while the optimal temperature for frozen food is between -18°C to -23°C. This drawer gives the user the flexibility to store items at the temperature that suits them best.

To help retain the juiciness of your produce, this refrigerator comes with a TasteLock Crisper with AutoHumidity Control which automatically adjusts humidity levels depending on the contents of the drawer. The AutoHumidity Control releases excess moisture from the compartment to help keep fruits and vegetables fresh for up to 7 days.
It also has a TwinTech Cooling System that cools the fridge and freezer compartments separately, so food stays fresher and odors don’t mix. The independent systems ensure optimal cooling and humidity to keep items in their freshest condition.
Meanwhile, the UltimateCare™ 500 Front Load Washing Machine and Dryer set comes with Vapour Care Technology that softens fabric while reducing wrinkles by up to 22%, resulting in the clothes that need less ironing. The same technology also eradicates 99.9% of allergens and germs, and it also comes with a SmartSensor in the dryer to eliminate over-drying, meaning laundry emerges clean and is longer lasting.

Electrolux perfect care washing machine

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Electrolux presents the new PerfectCare washing machines with the new AutoDose technology that allows you to carry out thirty washes without the need to add detergent or fabric softener, because the washing machine will take care of delivering the required amount independently based on the load.The drawer dedicated to detergents ensures great flexibility thanks to four large compartments – two automatic and two manual – easy to fill and clean.
After selecting the washing program, the AutoDose technology calculates the perfect amount of detergent and / or useful softener based on the laundry loaded. This avoids unnecessary detergent and water waste during the rinsing phase, ensuring significant energy savings and unique protection for the fabrics.Furthermore, the settings of the AutoDose drawer can be configured and managed remotely, with smartphones and tablets, through the My Electrolux Care App , receiving personalized notifications. The application also allows you to set, start and monitor washing cycles with extreme flexibility.To keep garments always soft and protected, paying the utmost attention to each individual fiber and fabric, Electrolux uses the most advanced technologies. The special SensiCare System sensors automatically adjust the washing settings, guaranteeing water, energy and time savings. While, for always brilliant colors, wash after wash, the innovative Ultra-Care technology pre-mixes detergent and softener with water, before they come into contact with the clothes in the basket, activating their cleaning power. The special Vapor PRO systemit also uses steam to stretch fabrics and eliminate creases: fibers are refreshed, odors disappear and garments remain fresh and easy to iron. Numerous special programs are available to offer the best washing performance, such as Denim, developed to minimize fading of denim garments. Reaching a maximum of 40 ° C and with delicate movements of the basket, this cycle does not stress the fibers and avoids ruining their appearance and texture.

Swedish appliance giant Electrolux has acquired French espresso machine manufacturer Unic,

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Swedish appliance giant Electrolux has acquired French espresso machine manufacturer Unic, bringing a full suite of espresso equipment to its Electrolux Professional division for the global foodservice and hospitality sectors.

The acquisition comes as Unic is celebrating the 100th anniversary of the design of its original machine, the Idrotermica, created by Italian Mario Levi. In 1929, Levi established the Unic manufacturing company in France, where it has been based ever since.

The financial terms of the acquisition have not been disclosed.

Electrolux Group

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The Electrolux Group received six international Plus X Awards for its line of vacuum cleaners and small appliances, including three Best Product of the Year awards.

Electrolux was also named in the category Most Innovative Brands of the Year.

The Plus X Award recognizes innovative technologies and sport and lifestyle products, judged in the categories of innovation, high quality, design, ease of use, functionality, ergonomics, and ecology.
The Most Innovative Brand designation goes to the companies with the most awards.

The products awarded are:
• Ergorapido vacuum cleaner (Best Product of the Year)
• Creative Range of small kitchen appliances (Best Product of the Year)
• Precision4Safety iron (Best Product of the Year)
• UltraOne vacuum cleaner
• Rapido vacuum cleaner
• Éspria coffee maker