A U.S. refrigerator factory will lay off 1,500 employees later this year ahead of a planned production change to laundry appliances including washing machines and dryers.
Electrolux, a home appliance manufacturer based in Sweden, announced a retooling at its South Carolina plant as part of a new joint venture agreement with the Midea Group, which will own 45% of the facility. Food preservation production will be phased out by July 2026 and fabric care is expected to start in the first half of 2027.
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The JV is expected to hire up to approximately 1,200 employees gradually across 2027 and 2028 as laundry appliance production ramps up. According to WYFF, all the laid off employees will be offered severance packages and will be invited back to work in the retooled facility.
Electrolux called the shutdown temporary, but said “we recognize the impact this decision will have on our valued employees. We are working closely with state and local agencies to support our employees and, where feasible, assist with placement in alternative roles within the Anderson community.”
The Electrolux and Midea JV will also co-own a refrigerator factory in Juarez, Mexico, while Electrox will continue to run its facilities in Tennessee, North Carolina and Mexico.
The JV and production changes for Electrolux come as the company is pursuing “targeted optimization of the global manufacturing footprint to improve capacity utilization and drive cost efficiencies.” The company said it expects a net reduction of approximately 3,000 employees globally over the next two years.
According to Reuters, Electrolux’s North American business has struggled for years with high costs, struggling factories and increased competition.
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