Electrolux and Midea Form Joint Ventures in North America

Electrolux and Midea Form Joint Ventures in North America

USA/Mexico: Electrolux Group has entered into a long-term strategic partnership with Midea Group to establish joint ventures in refrigeration and laundry manufacturing and sales across North America. The agreement includes a sales joint venture for food preservation products, alongside manufacturing joint ventures in Juarez, Mexico and Anderson, United States. The partnership is expected to commence in the third quarter of 2026 and aims to support product development, manufacturing operations and commercial activities across both segments.

Financially, the arrangement is expected to contribute to sales and deliver cost efficiency improvements of approximately SEK 600 million (USD 55 million, EUR 51 million) by the third year. Electrolux anticipates total non-recurring items of around SEK 2,400 million (USD 220 million, EUR 204 million) in the second quarter of 2026, including SEK 900 million (USD 83 million, EUR 76 million) in cash impact. The partnership will also involve capital expenditure of about SEK 1,100 million (USD 101 million, EUR 94 million) over three years, with operational changes affecting around 1,500 employees in 2026 and additional hiring planned in subsequent years.

Source: Electrolux