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Q: Brands of dishwashers made in Mexico ( Answered 4 out of 5 stars,   0 Comments )
Question  
Subject: Brands of dishwashers made in Mexico
Category: Business and Money
Asked by: johndmn-ga
List Price: $100.00
Posted: 25 May 2005 12:12 PDT
Expires: 24 Jun 2005 12:12 PDT
Question ID: 525531
What name brands of dishwashers does Electrolux have made in Mexico.
They have been moving some of the manufacturing facilities out of the
US into Mexico, and I would like to know what brands are made there.
If possible, the same information for any Electrolux products that
were made in the US but now made ofshore, either Mexico or China.

Request for Question Clarification by pafalafa-ga on 25 May 2005 12:48 PDT
Electrolux has moved much of its vacuum cleaner and refrigerator
production to Mexico.  As far as I can tell, dishwasher production is
being concentrated in Poland.  The company produces some of its
refrigerators and air conditioners in China.

I don't see any indication that dishwashers are manufactured in
Mexico, although I haven't done an exhaustive search yet.

From what I can tell thus far, however, it doesn't seem very likely
that much information can be uncovered about specific Electrolux
brands, especially given that the brand names may well change from
country to country.

If little or no brand name information is available, would you still
like me to attempt to answer the question anyway, with details of
Electrolux's production activities of different appliances in
different countries?

Let me know.

pafalafa-ga

Clarification of Question by johndmn-ga on 25 May 2005 13:39 PDT
Thanks for the information so far. I thought they moved a dishwasher
plant from Michigan to Mexico. This might have been under the
Frigidiare name, as Electrolux bought Frigidaire.

Yes, I would be interested in any information you have on what
appliances are made in what countries. If possible, brand information
is helpful, but I understand that it may be hard to get.

I appreciate your timely response.

John Davis
Answer  
Subject: Re: Brands of dishwashers made in Mexico
Answered By: pafalafa-ga on 28 May 2005 19:46 PDT
Rated:4 out of 5 stars
 
Hello John, and thanks for your patience as I pieced together
information to answer your question.

Like many manufacturers, Electrolux has been recrafting its global
presence, and shifting some of its manufacturing operations to areas
of the world where production costs are cheaper, and where production
itself is sometimes closer to newly-emerging consumer markets,
especially in Asia.

I conducted quite a number of searches -- including a general web
search, as well as searches of newspaper and business news databases
-- but virtually all of the information of interest came directly from
Electrolux itself, either at the company's website, or from filings
with the SEC in the US.

I've summarized this information below.  As I mentioned earlier, there
is not a great deal of information on specific brands, although there
is a lot on the types of appliances manufactured in different parts of
the world.

I trust you'll find this information fully meets your needs.  However,
please don't rate this answer if you feel there is other information
you'd like me to provide.  Instead, just post a Request for
Clarification, and let me know how I can further assist you.

Thanks,

pafalafa-ga



==========


Electrolux files an annual Form 20-F with the SEC, which details the
company's operations for the prior year.  The reports are a rich
source of information on how and where Electrolux does its business,
and they also provide interesting insights as to the company's overall
strategy in the global marketplace.

Their most recent Form 20-F was filed in April 2005, and covers their
performance for 2004:



http://www.sec.gov/Archives/edgar/data/813810/000095012305004229/l13166ae20vf.htm

SECURITIES AND EXCHANGE COMMISSION 
Form 20-F 
ANNUAL REPORT 
AKTIEBOLAGET ELECTROLUX 
April 8, 2005 


Below are some relevant excerpts from the report, along with my own
comments, in brackets:


[recent changes include shifting refrigerators (not dishwashers) from
Michigan to Mexico; vacuums from both Sweden and Texas to Hungary and
Mexico, respectively; and dryers from Sweden to Thailand]

...As part of its strategy of continued reduction of costs and
rationalization of its production activities, Electrolux has in the
past, and will in the future, relocate some of its manufacturing
capacity to low cost countries. For example, in 2004 Electrolux
decided to relocate its production of refrigerators in Greenville,
Michigan, to a new facility which is being built in Mexico; to close
its vacuum plant in Västervik, Sweden, and gradually transfer
production to Hungary; to close its vacuum-cleaner operations in El
Paso, Texas and transfer production to Mexico; and to close its
factory for tumble-dryers in Tommerup, Denmark and transfer production
to a new plant in Thailand and a plant in Sweden.



[a company timeline highlights some of its acquisitions and moves]
History and Development of the Company 

1986    WhiteConsolidated Inc, the third largest white goods company
in the United States with brands such as Frigidaire, Gibson,
Kelvinator and White Westinghouse, was acquired.

1990?s    The European expansion continued with the 1994 purchase of
the white-goods division of German AEG.

2000    Electrolux AB re-acquired the trademark and company name
?Electrolux? in North America, and thereby gained global control of
the company name and the Group?s most important brand.

2003-04    The consolidation of brands, with Electrolux as main brand,
accelerated and a consumer insight driven product development process
was initiated. The group re-introduced the Electrolux brand in USA
with vacuum cleaners in 2003 followed by high-end white goods in 2004.
During 2003 and 2004 relocation of manufacturing to low cost
countries, e.g. to Eastern Europe, South-East Asia and Mexico,
accelerated.




[This is a truly global-scale company, but still very much centered in
the 'first world']

The manufacturing operations of Electrolux were carried out at 96
locations in 25 countries. The aggregate size of these factories,
including warehouses and offices at the factory sites, was 36 million
square feet. The factories are, with very few exceptions, owned by
Electrolux. Most of the manufacturing facilities are located in
Europe. Electrolux operates 14 plants in Sweden.




[However, their focus is shifting, as the table (only partly
reproduced here) shows...Note that dishwashers are made in Poland]

In 2003 and 2004 investments were authorized for a new plant in Mexico
and six new plants in Eastern Europe and Asia. The following table
provides details of these facilities:

                    
Product  .... Country ...  Annual Capacity

Refrigerators   Mexico   1,600,000        
Refrigerators/freezers   Hungary   560,000      
Washing machines   Russia   150,000    
Tumble dryers   Poland1   600,000      
Washing machines   Poland   600,000      
Dishwashers   Poland   400,000     
Washing machines   Thailand   200,000     
Hobs/hoods   China   680,000     






[A bit more detail about the shift of production to Mexico, and some
of the other new plants in low-cost countries]

Expansion of capacity at existing plant 

In January 2004, it was decided that the refrigerator plant in
Greenville, Michigan, USA, would be closed during 2005. Most of
production in Greenville will be transferred to a new plant which is
being built in Mexico. The Company will invest SEK 1,200 million in
the Mexico plant, which will have an annual capacity of 1,600,000
units. Start-up of production is planned for in 2005. The Greenville
plant has approximately 2,700 employees. The cost of closing the plant
is estimated at SEK 1,100 million, of which SEK 979 million was
charged against operating income in the first quarter of 2004 within
items affecting comparability. Approximately half of the cost refers
to write-downs on assets.

     In May 2004, it was decided that the Group?s vacuum cleaner plant
in Västervik, Sweden, would be closed during the first quarter of
2005. Production was gradually transferred during the year to the
Group?s plant in Hungary. The Västervik plant had approximately 500
employees. The cost for closing the plant amounted to SEK 220 million,
of which SEK 167 million and SEK 20 million were charged against
operating income in the second and third quarter respectively, within
items affecting comparability. The remaining part was taken in
operating income for Consumer Durables Europe in the fourth quarter of
2004.

     In July 2004, a restructuring program was initiated to improve
profitability in the Group?s vacuum-cleaner operation in the United
States. The cost of the program amounted to approximately SEK 153
million, which was charged against operating income in the third
quarter within items affecting comparability. The program includes
closure of a plant in El Paso, Texas and transfer of production to the
Group?s plant in Mexico, as well as outsourcing of components
manufactured at the Mexican plant. The program was largely finalized
during the fourth quarter and affected about 850 employees.

     In the course of the year restructuring measures were also
implemented within the Australian appliance operation, including
production shutdowns at the cooker-hood plant in Dudley Park,
Adelaide, the small refrigerator and freezer plant in Orange, the
motor plant in Adelaide and the cooker plant in New Zealand, as well
as divestment of the tooling business. The cost of these measures
amounted to SEK 205 million, of which SEK 103 million was taken as a
charge against operating income in the third quarter within items
affecting comparability.


     In November 2004 it was decided that the cooker plant in Reims,
France would be closed at the end of the first quarter of 2005. The
plant has approximately 240 employees. The cost of the closure,
including write-down of assets and other related costs, was SEK 289
million, which was charged against operating income in the fourth
quarter within items affecting comparability.

     In December 2004, it was decided that the factory for
tumble-dryers in Tommerup, Denmark would be closed. Production at this
plant is mainly for the professional market. Production will gradually
be transferred to a new plant in Thailand and to a plant in Sweden.
The transfer will start at the beginning of 2006 and is scheduled for
completion at the end of 2006, when all production at Tommerup will be
discontinued






[Consolidation of manufacturing operations and moves to low-cost
countries are expected to continue and accelerate in the coming years]

In order to strengthen the Group?s long-term competitiveness and
secure its position as a leader in appliances, the Group will
accelerate the ongoing process of consolidation and relocation of
production.


During 2004, the Group decided to close four plants within appliances
and two within floor-care products. After these plants have been
closed, Electrolux will operate a total of 43 production units within
appliances and floor-care products, of which 16 are in low-cost
countries. It is estimated that about half of the remaining plants in
high-cost countries are at risk and may need to be relocated.





[Their move overseas began in earnest around 2002]

2002 Restructuring Program 

     The restructuring measures announced in December 2002 (the ?2002
Restructuring Program?) are proceeding as planned. The 2002
Restructuring Program focuses on improving under-performing
operations, such as air-conditioners in the United States and
appliances in China and India. The program is aimed at improving
productivity and adjusting the cost structure, and includes the
consolidation of production operations, rationalization of sales and
marketing activities, asset write-downs and employee layoffs. For
example, the Group consolidated its product platforms and changed the
production structure to a few master plants and a number of smaller
manufacturing units within its white goods operations in Europe and
closed certain plants within its white goods operations in North
America. With respect to its white goods operations in Latin America,
Asia and Australia, the Group also rationalized its refrigeration
production and sales and marketing activities in China, while in India
it consolidated its structure and laid off employees and wrote-down
assets.





[Their annual report for 2002 offers a bit of additional detail]

http://www.sec.gov/Archives/edgar/data/813810/000095015203006431/l01296ae20vf.htm
Form 20-F 
ANNUAL REPORT 
27 June, 2003 


[Initial focus was on small appliances like vacuums, as they are easy to ship]

As other manufacturers, Electrolux is focusing more on outsourcing of
manufacturing and production activities to sub-contractors in
lower-cost countries such as Mexico, China and parts of Eastern
Europe. Sourcing arrangements are especially important in the market
for small appliances and floor-care products that are easy to ship
from a low-cost producer to the markets in Europe and the United
States. The trend is less apparent in the market for professional
products where customers are willing to pay a premium for quality
products and where brand-identity is more important.





[Electrolux also produces an environmental report that provides
details on some of its plants]

http://vp017.alertir.com/files/Electrolux_Sustainability_Report_2003.pdf
Electrox Sustainability Report 2003



[A story on energy efficiency awards mentions some specific
appliances, and the facilities in which they were manufactured, such
as a freezer manufactured in Hungary]

?Electrolux has made great strides towards reducing energy and water
consumption in appliances overall, and we continue to strive for even
more efficient products every day,? comments Viktor Sundberg, Vice
President Environmental & European Affairs at Electrolux.

The winning models are a new chest freezer, an upright freezer, a
4-star refrigerator, and a table-top refrigerator. They are
manufactured in four different factories: Jászberény, Hungary;
Mariestad, Sweden; Susegana, Italy; and Florence, Italy.




[The report also lists the number of factories they have in each
region of the world, and each country...I've detailed just a few of
the lower-cost countries here, out of 95 plants total in 2003]


Europe total -- 54 plants, including:

Greece 1

Hungary 1

Poland 1

Romania 1


North America Total 22

Mexico 1


South America Total 5

Brazil 5


Asia Total 5

China 2

India 3

and one plant in Africa, which is in South Africa.




[the report notes the success of the dishwasher factory in North
Carlolina...of particular note, since you asked about dishwashers]

Safety first at Kinston dishwasher factory

Since the first dishwasher rolled off the lines at the Electrolux plant in
Kinston, North Carolina, back in 1989, the factory has shipped more
than 8 million units to homes across the US, Canada and Mexico.





[the Electrolux website actually provides brief profiles of their
operations in each country, by clicking on the map of the world, then
selecting the country of interest...I've included information on a few
countries here]:



http://www.electrolux.com/node619.asp
Sales and employees by country


[As I said, Electolux is still very much a 'first world' country with
most of its operations, sales and employees in Europe and North
America, although this is rapidly changing]

In 2003, 48% of Electrolux net sales were generated in Europe and 40%
in North America. The remainder was mainly in Australia, Brazil and
China. The average number of employees in 2003 was 77,140 (shown at
the end of this web page). Approximately 40,000 were employed in
Europe and approximately 21,000 in North America.



[here's an example of the information summary from Mexico, mentioning
their vacuum cleaner plant in Juarez]
http://www.electrolux.com/node304.asp?intRegionID=5&strRegionName=South+America&showSelected=1&intCountryID=69
Mexico

PLANT LOCATION 
Vacuum cleaners: Juarez 

[they also mention brands, but these appear to be brands sold in
Mexico, but not necessarily manufactured there]

Brands 
Consumer products: Frigidaire, Partner, White Westinghouse 
Professional products: Diamant Boart, Dimas, Electrolux Dito,
Electrolux Professional, Husqvarna, Jonsered, Molteni, Partner
Industrial, Target



[same sort of information for China]
China

PLANT LOCATION 
Refrigerators & washing machines: Changsha 
Diamond tools (Diamant boart): Xiamen 
 
Brands 
Consumer products: Electrolux, Partner 
Professional products: Diamant Boart, Dimas, Dito Electrolux,
Electrolux Professional, Husqvarna, Molteni, Partner Industrial,
Zanussi Professional


[and India]    
India 


PLANT LOCATION 
 
Washing machines: Butibori 
Refrigirators: Shahjahanpur 
Refrigerators: Warora 
 
Brands 
Consumer products: Electrolux, Kelvinator, Partner 
Professional products: Diamant Boart, Dimas, Dito Electrolux,
Electrolux Laundry Systems, Electrolux Professional, Husqvarna,
Molteni, Partner Industrial, Zanussi Professional
 


=================================


I hope that fully meets your needs.  But as I said, if you'd like
anything else, just give me a holler, and I'm at your service.


All the best,

pafalafa-ga



search strategy -- searched Google, newspaper databases, and the
Electrolux website for information on individual factories and brands.
johndmn-ga rated this answer:4 out of 5 stars and gave an additional tip of: $15.00
Very timely and thorough information. The research saved me a lot of time.

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