Electrolux to halt production at Hungarian plant

The Electrolux logo is seen during the IFA Electronics show in Berlin, Germany
The Electrolux logo is seen during the IFA Electronics show in Berlin, Germany September 4, 2014. REUTERS/Hannibal Hanschke

HELSINKI, Feb 1 (Reuters) - Sweden's Electrolux (ELUXb.ST) said on Wednesday it will halt production at its Nyiregyhaza plant in Hungary from early 2024, affecting around 650 jobs and booking a 550 million Swedish crowns ($52.8 million) charge in the first quarter of 2023.

Europe's largest home appliances maker also said it was looking into divesting the plant, which has made refrigeration products.

"The decision follows a review of production capacity needs including an investigation into the competitiveness of the Nyiregyhaza factory," Electrolux said in a statement.

The company estimated the cash flow impact from the closure to amount to around 300 million crowns, primarily in 2024-2025.

($1 = 10.4150 Swedish crowns)

Reporting by Essi Lehto, editing by Terje Solsvik

Our Standards: The Thomson Reuters Trust Principles.

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