Sustainability Report 2007
During 2007 Electrolux achieved on-target organic growth of 4% while continuing to restructure our manufacturing to ensure long-term competitiveness. Approximately 50% of our production now takes place in low-cost countries with access to growth markets, and we are approaching our goal of 60% by 2010.
Restructuring makes sound economic sense. But Electrolux recognizes that closures in high-cost countries present tough challenges for the individuals and localities concerned. It must be handled with sensitivity, in partnership with all those affected.
"When a closure is considered, Electrolux implements its rigorous ‘two-step’ process,” says Carina Malmgren Heander, Head of Group Staff Human Resources. “This engages labor unions, politicians and relevant government departments to explore all possible options. Where closure is confirmed, suitable retraining, employment search and compensation packages are brokered."
On the plus side, restructuring offers economic benefits to new employees and suppliers in low-cost economies and contributes to the community by promoting high social and environmental standards.
