STOCKHOLM, Sweden (AP) — Swedish appliance maker Electrolux AB said Friday it would close down its stove factory in Britain due to falling profitability.
The company said some of the plant's production would be phased out, while some would be moved to its factory in Swidnica, Poland.
The Spennymoor plant, in northeast England, has around 500 workers.
Magnus Yngen, head of Electrolux Major Appliances Europe, said the factory was incurring losses due to tougher competition and shifting customer preferences.
''Our competitors have, to a large extent, moved their production facilities to countries with a lower cost-base, which has resulted in increasing price pressure,'' he said.
''Running such a factory is not sustainable,'' he said. ''The cost gap is simply too large to bridge.''
Electrolux said production at the factory was expected to continue throughout 2008.
The company said the factory's closure would cost around 390 million kronor (euro41.3 million; US$60.6 million), which would be taken as a charge against operating income in the fourth quarter of 2007.