Electrolux buys washing machine factory in Ivano-Frankivsk from Antonio Merloni for EUR19 m

Electrolux (Sweden) has signed a contract on the purchase of a washing machine factory in Ivano-Frankivsk, which was acquired by Antonio Merloni S.p.A. (Italy) from JSC Nord (Donetsk) in 2003, the press service of Electrolux has reported.

The cost of the deal is EUR19 million.

"The deal is to be completed in the first quarter of 2011. Currently permits from the relevant antimonopoly authorities are awaited," reads a press release.

According to the report, the purchase of the factory will help Electrolux expand its presence on emerging markets in Eastern Europe.

"Ukraine is a free trade zone within the CIS, the members of which are Russia, Kazakhstan, Armenia, Azerbaijan and other countries," the press release reads.

"The expanding of our production base on emerging markets in Eastern Europe will increase the company's competitiveness and enable our products to be delivered more quickly to the CIS countries," the company's press service said, citing Electrolux President Hans Straberg.

Some 150 employees are working at the washing machine factory in Ivano-Frankivsk.

Electrolux Press Service Head Anders Edholm told Interfax-Ukraine that earlier Electrolux had no production facilities of its own in Ukraine.

Speaking about investment in the factory, Edholm said that the main investment of Electrolux in Ukraine at the moment was the purchase of the factory in Ivano-Frankivsk.

"The size and the need for further investment will be determined taking into account the development of the Ukrainian market and other targeted markets in the CIS and Central and Eastern Europe, which will receive products manufactured at the factory in Ivano-Frankivsk," said Edholm.

He said that the factory would produce washing machines under the Electrolux and Zanussi brands.