Electrolux to Close Chile Factory, Booking SEK 0.5 Billion Restructuring Charge

Electrolux AB ( ($SE:ELUX.B) ) just unveiled an announcement.

Electrolux Group will cease manufacturing operations at its factory in Santiago, Chile, by the end of April 2026, following a review that found the site was no longer cost-competitive. The closure will affect around 400 employees and result in a restructuring charge of approximately SEK 0.5 billion, including SEK 0.2 billion in cash costs, which will be booked as a negative non-recurring item in the first-quarter 2026 operating income for Region Latin America.

Despite shutting the Chilean plant, Electrolux plans to maintain its presence in the Chilean market by supplying products from other factories within the group and from external partners. The move underscores the company’s ongoing efforts to optimize its manufacturing footprint and cost structure in Latin America, while signaling potential short-term disruption for local workers and highlighting continued pressure on regional production costs in the global appliance industry.

The most recent analyst rating on ($SE:ELUX.B) stock is a Hold with a SEK65.00 price target. To see the full list of analyst forecasts on Electrolux AB stock, see the SE:ELUX.B Stock Forecast page.

More about Electrolux AB

Electrolux Group is a leading global appliance manufacturer that has spent more than a century developing products that enhance taste, care and wellbeing in the home. Through brands such as Electrolux, AEG and Frigidaire, the company sells household appliances in about 120 markets worldwide and reported sales of SEK 131 billion in 2025, with a global workforce of 39,000 employees.

With a strong emphasis on sustainability across its solutions and operations, Electrolux focuses on delivering innovative, efficient products for consumers. Headquartered in Stockholm, Sweden, the group maintains a significant international presence, positioning itself as a major player in the household appliance industry across both developed and emerging markets.

Average Trading Volume: 1,604,878

Technical Sentiment Signal: Strong Sell

Current Market Cap: SEK15.56B

For a thorough assessment of ELUX.B stock, go to TipRanks’ Stock Analysis page.