Electra Consumer Products today announced that its Chinese subsidiary won a contract estimated to be worth $150 million, to supply air conditioning systems to Swedish appliances giant Electrolux.
Electra said in a statement to the Tel Aviv Stock Exchange that the agreement would last for three years, from 2004-2006, with an option to extend the deal on an annual basis after that.
Electra said the air conditioning units would be provided to Electrolux in the US. Electrolux is entering the North American market for air conditioning units, and plans to sell the products in the US, Canada and Mexico under the Frigidaire brand, Electra added.
Electrolux produces powered appliances for kitchen, cleaning and outdoor use. More than 55 million Electrolux Group products, such as refrigerators, cookers, washing machines, vacuum cleaners, chain saws and lawn mowers, are sold each year in more than 150 countries around the world.
Sources inform “Globes” that Electra has been supplying air conditioning systems to Electrolux for ten years, although on a scale that was not significant for the company.
TASE-listed Electra Consumer Products is a subsidiary of Elco Holdings. Electra shares were up 3.7% at NIS 39.80 in late morning trade on Sunday.
Published by Globes [online] - www.globes.co.il - on 27 April, 2003