SWEDISH appliance maker Electrolux AB said yesterday that it will cut 750 jobs in Italy and stop all production at its plant in Scandicci, southwest of Florence.
The company will concentrate its production of refrigerators in Italy at its factory in Susegana in the northeastern part of the country.
It said it will make investments to increase efficiency and productivity at Susegana. Around 450 staff at Scandicci and about 300 in Susegana will be made redundant.
The company said production capacity for refrigerators has grown rapidly in recent years, with an emphasis on east Europe and parts of Asia.
"This development, in combination with increased global competition, has led to strong price pressure and subsequently a decline in margins," the company said in a statement.
The changes are expected to be completed in the second half of 2009. The restructuring will cost about 600 million kronor (US$100 million).