Electrolux confirmed on Wednesday that it will close its Jászberény factory in Hungary by the end of 2026, a decision that will impact about 600 staff at the site.
The Swedish home-appliances group said the planned closure is the outcome of a strategic review focused on strengthening cost competitiveness and increasing agility by optimising its production footprint. In explaining the rationale, Electrolux pointed to stagnant market demand, ongoing price pressure and mounting constraints on cost competitiveness.
As part of the move, Electrolux will record a restructuring charge of approximately 600 million Swedish kronor in the second quarter. The company specified that around 300 million kronor of that charge will be cash-related. No further financial details were provided in the announcement.
The Jászberény facility produces built-in and freestanding refrigeration products. Electrolux said it will continue to supply refrigeration products by relying on its existing operations and by using external manufacturing partners to meet customer demand.
Electrolux also noted that the planned factory closure will not affect local sales and marketing activities, which will remain managed from its Budapest office.
Summary
Electrolux will shut its Hungarian refrigeration plant in Jászberény by the end of 2026, removing around 600 positions. The company attributes the move to weak market demand, price competition and increasing cost pressures, and will take a roughly 600 million kronor restructuring hit in the second quarter, half of which is expected to be cash-related. Production for refrigeration products will be fulfilled through other company operations and external manufacturing partners, while local sales and marketing functions in Budapest are unaffected.
Key points
- Closure affects approximately 600 employees at the Jászberény manufacturing site in Hungary.
- Electrolux will record a restructuring charge near 600 million Swedish kronor in Q2, with about 300 million kronor being cash-related.
- Production of built-in and freestanding refrigeration products will be shifted to existing operations and external manufacturing partners; Budapest-based sales and marketing teams remain in place.
Risks and uncertainties
- Stagnant market demand for refrigeration products is cited as a factor in the decision.
- Ongoing price pressure is identified as a constraint on profitability and competitiveness.
- Constraints on cost competitiveness were listed as a reason for the production footprint optimisation; the company will take a sizeable restructuring charge that includes a cash component.