Swedish appliance maker Electrolux AB stated, its North American business is set to incur costs of around $70 million in the fourth quarter as it prepares to move into a new facility in South Carolina.
The Swedish company stated, it is investing nearly $250 million in new product platforms at a facility in Anderson, South Carolina, and that the factory will replace manufacturing in St Cloud, Minnesota, as well as manufacturing at another facility in Anderson.
Electrolux also disclosed that it expects its operating income to take a hit from accounting adjustments from previous quarters as well as a reduction in inventory by a U.S. customer.
The new investment program along with streamlining measures is on track to generate nearly $363.59 million (3.5 billion crowns) in annual cost savings, whose full effect will kick-in from 2024.
It went on to add, capacity issues in Anderson are expected to be gradually resolved during the first half of 2020.