Your browser is out-of-date!

Update your browser to view this website correctly. Update my browser now


Electrolux Halts Tennessee Expansion Amid Trump Metal Tariffs

Awaiting further details from the White House

Watch: Electrolux Pausing Tennessee Expansion

Electrolux has put on hold a planned $250 million-plus investment in its Springfield, Tenn., kitchen appliance plant after President Trump announced his intention to impose sharp tariffs on imported steel and aluminum.

The Swedish majap maker told Reuters it has postponed any capital improvements at the manufacturing facility pending further details from Washington.

Electrolux said the duties could affect it indirectly by raising the price of U.S.-made steel, which it uses exclusively in its domestically-made products.

The investment was designed to modernize the Tennessee factory and expand it by 400,000 square feet to accommodate increased manufacturing capacity and a new line of freestanding cooking products.

See: Electrolux Beefing Up U.S. Production

Construction was to begin late this year and continue into 2020.

However, the company told the local Greenville News that it will continue a separate $250 million-plus modernization and expansion program at its refrigerator/freezer facility in Anderson, S.C., which it began last year.

Electrolux is adding 800,000 square feet to the plant, which will produce a new line of Frigidaire products, and is consolidating freezer production there from its factory in St. Cloud, Minn., which is scheduled to close next year.

Last week President Trump offhandedly announced plans to impose duties of 25 percent and 10 percent, respectively, on imported steel and aluminum, sending the stock market reeling and his top economic adviser Gary Cohn heading for the exit.