RESHORING CASE

Electrolux

Company details
Code: 
Electrolux
Company name: 
AB Electrolux
Company country: 
Sweden
Number of employees: 
59481
Sector: 
C - Manufacturing
Sector detail: 
C27 - Manufacture of electrical equipment
Reshoring details
Reshoring announcement date: 
11/04/2016
Starting implementation date: 
April, 2016
End of Implementation : 
November, 2016
Reshored to: 
Poland
Reshored business function: 
Production
Partial or Total reshoring: 
Total
Reshoring governance mode: 
In house (in own facilities)
Reasons for reshoring: 
Change in total costs of sourcing
Firm's global reorganization
Labour costs
Case narrative: 

On the 11th April 2016, Electrolux will close its production facilities in Australia.

All production will be relocated to various facilities overseas, causing 300 Australian employees to lose their jobs. More than two hundred employees will immediately be let go, while 90 will remain until November in order to decommission the facility. The facility had a capacity of around 1,300 fridges per day and has produced about 12 million fridges since the 1940s. Electrolux has moved its fridge production to Europe and south-east Asia, primarily Poland and Thailand.

Sources: 

Herald Sun, 11/04/2016

Sources link: 

http://www.heraldsun.com.au/news/national/electrolux-fridge-factory-clos...

Offshoring details
Offshoring date: 
1975
Offshoring location: 
Australia
Reason for offshoring: 
Merger and Acquisition
Proximity to customers
Notes: 
Regarding offshoring it is not clear at what moment in time Electrolux bought the factory that was already producing fridges since 1940s. It should have happened during the last 30-40 years