LOUISVILLE, Ky. (WDRB) -- Electrolux promised investors Wednesday that it would wring an additional $50 million in annual cost savings -- on top of the already promised $300 million -- from the combined operations with General Electric's appliance division, which is expected to become part of Electrolux later this year.
The promise of additional "synergies" from the GE deal came as Electrolux also announced the resignation of the head of its North American appliance division amid disappointing results for the first quarter of the year.
Just what the Electrolux deal means for about 6,000 white-collar and factory jobs at GE's Appliance Park in Louisville has been an open question since the deal was announced Sept. 8, 2014.
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The $300 million in “synergies” was part of a presentation Electrolux gave to investors the day the deal was announced. The presentation said the cost savings would be achieved mainly through the shared “sourcing” of materials, but also through “operations.”
Electrolux said Wednesday that an additional $50 million in savings had been identified through “integration planning” work with GE.
Eloise Hale, an Electrolux spokeswoman, said the "synergies" will be achieved within three years of the sale.
“The preparation work for the integration of GE Appliances is progressing well and Electrolux remains confident that the transaction will be closed in 2015,” Electrolux said.
The statement did not mention the massive fire that destroyed one of Appliance Park's buildings on Friday.
Reporter Chris Otts: (502) 585-0822, cotts@wdrb.com
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