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Jaszbereny unit produces built-in and standalone refrigerators, but will be closed after Electrolux’s strategic review, citing stagnant demand, price pressure, and the pursuit of greater cost competitiveness by 2026
The Electrolux factory in Jaszbereny, Hungary, will be closed by the end of 2026, affecting about 600 employees. The Swedish appliance manufacturer attributes the decision to stagnant demand, price pressure, and the need to reduce costs in a more competitive environment.
Closure affects refrigeration factory in Hungary
The Jaszbereny unit produces built-in and standalone refrigeration equipment. The closure is part of Electrolux’s strategy review to strengthen its cost competitiveness and make the production base more agile.
The company stated that the measure is linked to production optimization. As a result, the demand for refrigeration products will be met by existing operations and external manufacturing partners.
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About 600 employees will be affected by the factory closure
The most direct impact of the decision will be on the approximately 600 employees of the Electrolux factory in Jaszbereny. The closure is scheduled to occur by the end of 2026.
The company did not provide, in the consulted material, details about any transition measures for the affected workers.
No additional data on relocation or labor agreements were presented either.
Company cites weak demand and price pressure
Electrolux stated that the closure occurs amid a competitive environment marked by stagnant market demand, price pressure, and increasing constraints on cost competitiveness.
These factors were pointed out by the manufacturer as part of the scenario that led to the decision to close the industrial operation in Jaszbereny.
Restructuring will incur a charge of 600 million Swedish crowns
The company will record a restructuring charge of about 600 million Swedish crowns, equivalent to approximately US$ 65.3 million or US$ 65.6 million, according to the consulted sources.
Of this total, 300 million Swedish crowns are related to cash. The accounting entry will be made in the second quarter.
Despite the closure of the industrial unit, Electrolux’s local sales and marketing activities, managed by the Budapest office, will not be affected.
This article was prepared based on information from Reuters and Investing.com, with data, numbers, and statements preserved as per the consulted material.
