Electrolux to close Italian refrigerator plant

Stockholm  - Swedish home appliance maker Electrolux said Tuesday it will close one of its refrigerator plants in Italy to boost competitiveness, citing the results of an internal review.

Production of refrigerators at Scandicci, south-west of Florence, will relocate to the group's plant at Susegana, impacting some 450 employees, the group said.

Electrolux said it planned to help find "solutions to reduce negative impact on affected employees," noting possibilities like outplacement services.

Meanwhile the group was to invest in the Susegana plant about 45 kilometres north of Venice.

"The competitiveness of our Italian refrigerator plants has been weakening for several years," Ernesto Ferrario, Senior Vice President Operations, Major Appliances Europe, said in a statement.

Electrolux said it expected the change to be completed in the second half of 2009.

The restructuring was estimated to incur costs of some 600 million kronor (101 million dollars), of which 540 million kronor would be charged against operating income for second quarter 2008. (dpa)

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