At the beginning of next year, Electrolux, a Swedish multinational home appliance manufacturer, will stop production at its Nyíregyháza refrigerator factory in eastern Hungary. The decision is due to the changed business outlook.
The economic crisis caused by the coronavirus, followed by the war in Ukraine and sanctions, are not helping the European economy at all. Companies are shutting down and stopping production, and Electrolux is no exception.
From 2024, the company will no longer produce refrigerators in its Nyíregyháza factory, not only because the business environment has changed, but also because demand is low. The decision follows an impact study carried out in the last quarter of 2022 on the competitiveness of the factory.
The plant currently employs 650 people and their future is uncertain, but the company is trying to help them. According to the statement,
the company will contact the employment department of the government office and will also engage an external consultant to help the workers affected by the shutdown to find employment as soon as possible.
The workers will be regularly informed about the restructuring process.
However, there may be a solution to the workers’ situation; even though one factory is closing in the eastern Hungarian town, a new one is coming in. German Boysen Group is investing HUF 60 billion (EUR 154 million) to create 400 new jobs in Nyíregyháza. The new plant will produce electric car components, specifically battery cover plates, for BMW’s plant in nearby Debrecen.
Featured photo via Facebook/Péter Szijjártó