- Electrolux is one of the companies in the home appliance segment that dominates the market.
- In the Nordic countries it has a market share higher than 40 percent.
- Its global revenues have remained stable between 12 billion and 14 billion dollars for a decade.
The Swedish company Electrolux has decided to leave Russia. The measure is fulfilled seven months after the beginning of the war between the country of Vladimir Putin and Ukraine.
As other companies of American and European origin did, the appliance manufacturer will abandon its plants and will no longer manufacture its products in that country.
As announced in a statement, it will transfer its business in Russia to a local subsidiary.
Electrolux had stopped its operations in Russia when the war in Ukraine started. As explained by the firm, the exit would cost it a capital loss of approximately 350 million Swedish kronor (about 32 million dollars) and will affect the operating income of the Europe business area in the third quarter of 2022.
“Russia’s invasion of Ukraine and subsequent sanctions have made it impossible for Electrolux to continue its operations in that country,” the company said in a statement to the media.
In 2021, Sales in Russia represented 4% of the total business in Europe and 1.6% of the global business.
“The Russian invasion of Ukraine and the subsequent sanctions have made it impossible for Electrolux to continue its business in that country. The decision to sell the Russian business to local management is intended to enable a responsible and controlled exit. The divested company will continue to service appliances sold so far by Electrolux in Russia. Electrolux will no longer produce in Russia and will not supply any appliances to the new company,” the company adds.
The full statement of Electrolux on Russia.
Electrolux leaves Russia
Electrolux’s output is not a minor fact. It is one of the largest home appliance manufacturers in the world.
The firm was founded in 1918 in Stockholm, Sweden, following the merger of Lux and Svenska Elektron. The name was initially spelled “Elektrolux”, but changed to its current form in 1958.
It started with 400 employees and today it has more than 48 thousand.
Electrolux only made electric vacuum cleaners when it was formed, but now it makes all kinds of home appliances. In addition to the brand that bears the firm’s name, it sells appliances under the names Frigidaire and AEG, among others.
Electrolux’s total revenue has been relatively stable between 12 and 14 billion dollars in the last 10 years.
The company generates most of its revenue from its main appliance segments in Europe and the United States. It also sells massively in Brazil and Australia.
Its market share is especially high in the Nordic countries, where it has a market share of almost 40 percent of the basic household appliance segment.
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