Electrolux Group and Midea Group have entered into a long-term strategic partnership focused on refrigeration and laundry operations in North America, a move the companies say is intended to strengthen product development, improve operational flexibility and support future growth.
The agreement establishes three joint ventures covering refrigeration product sales and manufacturing, as well as laundry manufacturing operations in North America. The partnership is expected to begin operations in the third quarter of 2026, pending remaining regulatory approvals outside the United States.
Electrolux said the arrangement is part of its broader effort to transform its North American business. The company expects the partnership to contribute to increased cost efficiencies over the next three years, estimating improvements of approximately SEK 0.6 billion by year three.
The agreement builds on a sourcing and supplier relationship between the companies that spans more than two decades. Under the new structure, Electrolux will combine its North American retail presence and consumer research with Midea’s manufacturing operations and supply-chain capabilities.
A central component of the agreement is a 50-50 sales joint venture focused on refrigeration products in North America. The venture will oversee product planning and commercial strategies for refrigeration brands from both companies and will jointly develop new products for the market.
The companies will also establish a manufacturing joint venture in Juarez, Mexico, focused on refrigeration production. Under that arrangement, Midea will acquire a 65 percent stake in the operation, while Electrolux will retain 35 percent ownership. Electrolux’s laundry operations in Juarez will remain separate.
In Anderson, South Carolina, the company plans to convert an existing refrigeration plant into a laundry manufacturing facility. Electrolux will hold a 55 percent stake in that venture, with Midea owning the remaining 45 percent. Refrigeration production at the Anderson facility is expected to end by July 2026, while laundry production is scheduled to begin during the first half of 2027.
According to Electrolux, the partnership will affect approximately 1,500 employees during 2026 and result in non-recurring charges of approximately SEK 2.4 billion in the second quarter of 2026. About SEK 0.9 billion of those costs are expected to have a cash impact and are primarily tied to severance expenses.
The Anderson laundry operation is expected to gradually hire up to 1,200 employees during 2027 and 2028 as the factory transitions to fabric care manufacturing.
In a statement, Yannick Fierling said the partnership is intended to support Electrolux’s long-term growth strategy while allowing the company to continue investing in connected and consumer-focused product development.
Electrolux reported that its North American business generated approximately SEK 45 billion in net sales during 2025, representing about 34 percent of the company’s total revenue.
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