Electrolux is investing over half a billion dollars into its US manufacturing arm to expand operations and support the launch of new kitchen products.
As part of the plan, more than $250m will be utilized to modernize and expand the company’s Springfield facility to increase manufacturing capacity, with work expected to continue into 2020.
The Springfield plant will also produce a new line of freestanding cooking products, the company said.
Another $250m will be used to produce a new line of Frigidaire products and grow the manufacturer’s refrigerator facility in Anderson.
Freezer manufacturing will also be relocated from the factory in St Cloud to the Anderson facility, with the St Cloud operation ceasing production this year as a result.
The company is taking a $75 million restructuring charge this quarter to cover the consolidation.
“This is a difficult announcement for our Minnesota teammates,” said Alan Shaw, who heads Electrolux Major Appliances North America. “We are committed to supporting them and are announcing this two years in advance to provide transition time.”
Shaw added that the company is “committed to the Frigidaire brand [and] our U.S. manufacturing base,” and that the consolidation will help simplify operations.
The $500 million investment is part of an increase in capital expenditures designed to drive growth in North and South America over the next three to four years, with a focus on product development, automation and innovation, Electrolux said.