Competitive production footprint as of 2010
The restructuring program initiated in 2004 is aimed at making the Group’s production competitive in the long term. The costs of the program are estimated at approximately SEK 8 billion. Savings will amount to approximately SEK 3 billion annually. Relocation of the Group’s production of vacuum cleaners has already been completed.

More than half of the restructuring program has been completed by the end of 2007. Approximately 50% of production is located in low-cost countries, which means that the Group is quickly approaching the goal of 60% by 2010. The cost of the program at year-end 2007 amounted to approximately SEK 6 billion. Savings were in accordance with plans, and amounted to approximately SEK 1.5 billion.

Program for greater production efficiency
The Electrolux Manufacturing System (EMS) was launched in 2005 and is based on a number of tested methods for improving production efficiency that have been developed both within and outside the Group. Production safety and working environment are improving and product quality is rising. The EMS has been introduced with great success in virtually all Electrolux plants worldwide.

Increased purchases from low-cost countries
Electrolux works closely with suppliers, who must always comply with the Electrolux Environmental Policy as well as the Workplace Code of Conduct. In 2007, savings related to Group purchasing amounted to approximately SEK 1.7 billion.

Group purchases from suppliers in low-cost countries are being increased in order to achieve additional cost reductions. The share of such purchases has increased from approximately 30% of total purchases in 2004 to approximately 48% in 2007, and is expected to amount to approximately 50% in 2008.

Lower energy consumption
Electrolux works continuously to achieve more efficient energy consumption in production facilities in order to limit emissions of carbon dioxide and to cut costs as well. The Group’s goal is to reduce overall energy consumption by 15% between 2005 and 2009. This is expected to generate savings of approximately SEK 100m annually. The Group has about 50 plants worldwide, and they are expected to generate approximately 95% of the reduction in energy consumption.