STOCKHOLM, Sweden (AP) — Swedish appliance maker Electrolux AB on Thursday said it will investigate whether to close down its stove factory in Britain due to falling profitability.
The factory has about 500 workers and is located in Spennymoor, northeast England.
Magnus Yngen, head of Electrolux Major Appliances Europe, said price erosion and increased global competition has ''significantly undermined the profitability of the factory in Spennymoor, which is why we need to review the operations there.''
The plant manufactures freestanding and built-in stoves for the British and Irish markets.
''Imports from countries with lower cost levels have intensified over the last few years, therefore resulting in lower prices.''
Electrolux said the investigation expected to be completed during the fourth quarter this year.