Electrolux a suitor for GE Appliances

By Michael Lauzon
Correspondent

Published: August 15, 2014 12:58 pm ET
Updated: August 15, 2014 1:00 pm ET

Related to this story

Topics Appliances, Injection Molding

Swedish appliance conglomerate AB Electrolux has confirmed it is one of the suitors for a possible acquisition of GE Appliances.

Electrolux stated Aug. 14 that it is in discussions for a potential purchase of GE Appliances.

“No agreement has been reached, and there can be no assurances that an agreement will be reached,” the firm said in a news release. “Any further announcements will be made in due course.”

A spokesman reached by phone at Electrolux’s head office in Stockholm said the company would not comment beyond the short news release. Electrolux made the announcement to comply with securities regulations.

GE has been gussying up its appliances business and it is now a more attractive for potential buyers than it was six years ago, when GE wanted to sell it. GE announced with much fanfare in summer of 2012 that it was investing $1 billion to expand and modernize its Appliance Park in Louisville, Ky., and upgrade product lines. GE boasted it was bringing more parts production in house and relying less on sourcing for lower wage geographies.

GE instituted lean manufacturing in Louisville, improved plant layout and ergonomics and hired a small army of engineers to oversee the changes. In the transformation, GE became the fourth largest injection molder in the United States.

Besides expanding in Louisville, GE tapped focus groups for new ideas on features. It redesigned refrigerators and dishwashers to make them more user-friendly and multifunctional.

Until a few months ago, GE executives continued to trumpet the big cultural change at Appliance Park. When GE tried to sell the appliances business in 2008 the appliance sector was in the depths of a recession and no one appeared with an acceptable price. Its next tack was to invest heavily in the business to keep up with competitors. That the business is now for sale again suggests GE’s strategy might have been trying to sell it again and has been dressing it up for a second sales attempt.

Electrolux is a globally prominent appliance major with operations in 150 countries and with 2013 sales of $15.9 billion is about twice the size of GE Appliances.. The latter is concentrated in North America and with GE’s lighting business, logged $8.3 billion in sales.

GE was an appliance pioneer early in the 20th century with its lines of toasters, refrigerators, ranges and clothes washers. Promoting the early sales of the white goods it offered financial lending services that became its GE Capital business. It has publicly stated its intent on exiting businesses in which it is not a leader. Appliances represent less than 6 percent of its annual sales of about $145 billion.


Comments

Electrolux a suitor for GE Appliances

By Michael Lauzon
Correspondent

Published: August 15, 2014 12:58 pm ET
Updated: August 15, 2014 1:00 pm ET

Post Your Comments


Back to story


More stories

Image

Globalization brings sizable growth, primarily in Asia

November 25, 2014 1:40 pm ET

In 1990, the year after Plastics News published our first issue, there were 33,000 injection molding machines sold worldwide. Fast forward to 2013,...    More

Image

Uni Cap to build cap molding plant in Jordan

November 25, 2014 12:57 pm ET

The Persian Gulf's largest molder of caps and closures is investing $10 million in a new factory near Amman, Jordan, as part of an effort to boost...    More

Image

Canada's Papp Plastics is eyeing big opportunities with JV in Mexico

November 24, 2014 4:11 pm ET

Canadian injection molder and turnkey solution provider Papp Plastics & Distributing Ltd. will open an $11 million to $12 million joint venture...    More

Image

AMA Plastics adds presses, changes management structure

November 24, 2014 3:57 pm ET

AMA Plastics Inc. has strengthened its management structure, received recognition for entrepreneurship, achieved quality improvements and added three ...    More

Image

Indiana injection molder PRD expands

November 24, 2014 1:56 pm ET

Automotive supplier PRD Inc. is expanding its manufacturing facility in Springville, Ind.    More

Market Reports

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events