Electrolux to halt production at Hungarian plant

HELSINKI - Sweden's Electrolux 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)