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Electrolux Group's Strategic Decision to Close Santiago Factory

Introduction
In a significant shift towards operational efficiency, Electrolux Group has declared the closure of its manufacturing facility located in Santiago, Chile, which will take place by the end of April 2026. This decision reflects the company's ongoing commitment to optimizing its production capabilities and maintaining cost-effectiveness in a highly competitive market.

Reasons for the Closure

The decision to halt manufacturing at the Santiago site comes after a comprehensive review of the factory’s cost competitiveness. Despite the facility's historical importance, rising operational costs have prompted the company to seek more cost-effective solutions. After evaluating multiple factors, Electrolux Group concluded that the closure of this facility is necessary to align with their financial goals and operational strategy in the Latin American region.

Impact on Employees

Approximately 400 employees will be affected by this closure. Electrolux Group has emphasized its commitment to providing support to these workers during this transition period. While the factory will cease operations, the company plans to offer various opportunities for its employees, including potential roles within other facilities or support services to assist with their next steps.

Financial Implications

Electrolux anticipates incurring a restructuring charge of around SEK 0.5 billion, of which SEK 0.2 billion is anticipated to be cash-related. This charge will be classified as a negative, non-recurring item affecting the company's operating income for the first quarter of 2026 specifically within the Latin American region. Such financial adjustments underline the company's commitment to transparency and investor communication regarding significant operational changes.

Future Plans for Electrolux in Chile

Despite the closure of the Santiago factory, Electrolux Group reiterates its dedication to the Chilean market. The company aims to continue providing innovative, cost-efficient products sourced from other factories within its global network and partnerships with external suppliers. This strategic realignment demonstrates the brand’s resilience and ability to adapt within a rapidly evolving market landscape.

Ensuring Product Availability

To ensure continuous service and product quality, Electrolux will leverage its international manufacturing capabilities, sustaining a robust supply chain to meet customer needs in Chile. This means that while local production will cease, customers can still expect to receive a wide range of household appliances and related products without interruption.

Conclusion

The decision to close the Santiago manufacturing plant is reflective of the broader strategic direction of Electrolux Group. As the company navigates changes in the market environment, maintaining efficiency and competitiveness remains a top priority. The focus now shifts to supporting the affected employees and ensuring that consumers continue to have access to Electrolux’s high-quality products through alternative manufacturing and distribution channels.

For more information, please contact:

• - Ann-Sofi Jönsson, Head of Investor Relations - Sustainability Reporting, +46 73 035 1005
• - Maria Åkerhielm, Investor Relations Manager, +46 70 796 3856
• - Henry Sjölin, Investor Relations Manager, +46 76 863 51 85
• - Electrolux Group Press Hotline, +46 8 657 65 07