The Swedish manufacturer Electrolux has announced an upgrade worth €100million at its plant located in Nyíregyháza, north east Hungary.  The company will also be outsourcing vacuum cleaner production and some of the free-standing refrigeration production to its other plant located east of Budapest in Jászberény.

There are 800 workers in the Jászberény plant who will be affected by the move according to Electrolux who are already in negotiation with local trade unions.  One of the reasons behind the move is said to be the increase in production costs.

The plan is that the production in the Jászberény pant will be outsourced with effect from 2020 while the new investments in  Nyíregyháza will be made between 2020 and 2023 with automation seen as a necessary part of boosting the efficiency of the plant.

Electrolux is a large employer in Hungary, public records show that in 2018 the company employed 2,385 blue-collar and 422 white-collar workers on average.