The Electrolux Group Expands Tennessee & South Carolina Production Centers
"We are committed to investing in U.S. manufacturing and launching new Frigidaire kitchen products. By appropriately right sizing our business for a changing market, we can invest in the growth areas and drive profitability," said Alan Shaw, Head of Electrolux Major Appliances North America.
According to company officials, the company will modernize and expand its facilities in Springfield (cooking products) and Anderson, South Carolina (refrigeration products).
Electrolux is increasing its level of capital expenditure investments to drive targeted growth during the coming three to four years, particularly in North America and Latin America. Investments will be focused for product excellence, automation and innovation, officials said.
In light of changing market dynamics, increased raw material costs and current trade policy, the Springfield, Tennessee investment, estimated at USD 250 million, is now designed for product development, flexibility and competitiveness. As Electrolux reinitiates the project and consolidates into Springfield, the company said it will also cease production at its Memphis, Tennessee facility and transfer refrigeration manufacturing from its Santiago, Chile facility to other locations.
The Springfield, Tennessee expansion will be complete and production will begin during the fourth quarter 2020. The Anderson, South Carolina expansion will be complete and production will begin during 2019.
The increased global use of modular product platforms has also contributed to a decision to cease manufacturing of refrigerators at Electrolux factory in Santiago, Chile, to improve efficiency and sharpen the local product offering. The facility will continue to produce laundry and cooking products, which today make up the majority of its output.
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