Doubt over 500-job cooker plant

The Swedish firm said its Spennymoor factory was losing money because of increased global competition.

The plant makes a range of cookers for the UK and Irish markets.

The firm said a review, due to be completed in December, would consider switching production to cheaper facilities in eastern Europe.

In June 2005, Electrolux invested £7m in a new line of cookers at the Spennymoor site.

'Price pressure'

But it now says intense worlwide competition has prompted an urgent review of its operations.

General manager Dave Watroba said: "It's important to understand that we are not making a closure announcement today.

"However, the factory in Spennymoor has been making a loss over the last few years and although financial results have been improving, we need to assess whether it will be feasible to take the business into profit in the foreseeable future.

"A preliminary analysis of the operation in Spennymoor has indicated that major savings could be achieved by transferring production to a facility in a lower cost country."

'Important employer'

Regional development agency One NorthEast agreed to plough £1.6m into the plant in 2005 in an effort to retain manufacturing jobs in County Durham.

An associated warehouse, employing 40 people, is not affected.

Stewart Watkins, managing director of the County Durham Development Company (CDDC), said: "We have arranged an urgent meeting with Electrolux to outline the support and expertise available in an effort to ensure the long-term future of this important employer in the county.

"Electrolux is a major employer in County Durham and we will do everything in our power to ensure it remains an important part of the regional economy."

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