Swedish home appliances maker Electrolux said Tuesday it will invest about EUR 100 million to upgrade production at its high-end refrigerator plant in Nyíregyháza (NE Hungary), while outsourcing production of vacuum cleaners and a "significant part" of free-standing refrigerators at its plant in Jászberény (east of Budapest).
The changes in Jászberény are expected to impact about 800 production employees, Electrolux said. According to news portal hvg.hu, the company said that one reason behind the decision is rising costs. Electrolux has already opened negotiations with unions.
Production in Jászberény will be outsourced from 2020, while the investments in Nyíregyháza will take place between 2020 and 2023. The company added that the reason behind the automation project in Nyíregyháza is boosting effectiveness.
Electrolux had an average 2,385 blue-collar and 422 white-collar workers on its payroll in Hungary last year, public records show.
The Ministry of Finance announced it is following the situation of the Electrolux staff in Jászberény closely. National Employment Service (NFSZ) registries show some 5,000 unfilled positions in Jász-Nagykun-Szolnok County, where the plant is based, the ministry said, according to news site uzletem.hu.