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Electrolux to invest Ft 8 bln at Hungarian unit in 2007

Swedish white goods maker Electrolux plans to invest Ft 8 billion at its unit in Hungary next year, the same amount as it is investing this year, deputy CEO Lars Goran Johansson said on Thursday at an event in Jászberény, near Budapest, to mark the company's fifteenth year in Hungary.

Electrolux has invested Ft 74 billion at its unit in Hungary, Electrolux Lehel Kft, since 1991, exceeding the dividend it has taken out of the company. Listing the advantages offered by Hungary, Johansson cited the country's stable economy and politics, its network of suppliers, its developed industry and its good transportation system. Hungarians tend to remain loyal to the company, he added.
Labor Minister Péter Kiss, also attending the event, said Hungary attracted €2.5 billion of FDI in the first half of 2006. In 2005, the country attracted FDI of €5.5 billion.
Electrolux Lehel's staff of 4,300 will make 5 million products this year. The unit expects to close 2006 with revenue of Ft 155 billion, up from Ft 145 billion in 2005. Much of the unit's output is exported, but it also controls about one-third of Hungary's white goods market. Electrolux moved its entire European vacuum cleaner production to Hungary in 2003.