Electrolux has decided to discontinue production at its factory in Spennymoor, moving some of the remaining production to its plant in Swidnica, Poland and putting 500 jobs at risk.
‘Our competitors have to a large extent moved their production facilities to countries with a lower cost-base, which has resulted in increasing price pressure,’ said Magnus Yngen, head of Electrolux Major Appliances Europe.
‘This development in combination with a shift in consumer preferences, moving from freestanding cookers to built-in cookers, has eroded the competitiveness of our Spennymoor factory. Today the factory generates a loss. Running such a factory is not sustainable, which is why we have decided to consolidate our UK cooker manufacturing into our factory in Swidnica in Poland.
‘Closing a factory is always the last resort and is not something we strive to do. In this specific case, I would like to express my appreciation to the employees of the Spennymoor factory for submitting constructive ideas on improvements and potential cost savings. I do regret that despite the efforts made by our employees the cost gap is simply too large to bridge.’
Production at the factory, which has been in operation for 50 years, is expected to continue throughout 2008. The Spennymoor factory manufactures freestanding and built-in cookers for the UK and Irish markets and has approximately 500 employees.
RDA One NorthEast today pledged to work with partners to help Electrolux workers find new employment.