Historic Hungarian company owned by Electrolux ceases production, sends away hundreds of employees

Electrolux will discontinue production at its refrigeration products plant in Jászberény (East Hungary) by the end of 2026, the Swedish appliances maker said on Wednesday.

Electrolux to dismiss hundreds of people

“The decision follows a review of the company’s strategy to strengthen cost competitiveness and increase agility through production footprint optimization,” the company said, highlighting stagnant market demand, price pressure and increasing constraints on cost competitiveness, the Hungarian News Agency wrote.

The closure will impact around 600 employees. The plant makes built-in and freestanding refrigerators. Electrolux earlier shut down production at its refrigeration products factory in Nyíregyháza (Northeast Hungary).

Mayor Budai hopes for a brighter future

Lóránt Budai, the Mayor of Jászberény, expressed his profound sorrow in a Facebook post. He described the company as a symbol of the town, a major supporter of local projects, and a provider of jobs for thousands of people. Budai noted that the company had assured him it would offer an attractive benefits package to its employees and assist them in finding new jobs. He pledged the municipal government’s full cooperation and support for all workers facing job losses.

He added that the company had been continuously discussing the plant’s future with the ministry. Budai said negotiations would continue on Thursday.

The Jászberény plant of Electrolux was formerly that of Lehel, a historic Hungarian appliance manufacturer from the Socialist era mostly known for its refrigerators. In 1991, following the company’s privatisation, it became part of the Electrolux group. As a result, the Jászberény plant became one of Electrolux’s facilities.

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