Is Electrolux planning to export jobs?

Household appliance manufacturer Electrolux is planning to move operations to countries where labour costs are lower.

But staff at the company's cooker factory, in Spennymoor, and Flymo lawnmower plant, in Newton Aycliffe, are hoping they can convince bosses to safeguard the future of both sites and the 800 jobs they provide.

The news, published yesterday in the company's annual report, sent shock waves through both work forces, who feared they would become victims of a global restructuring out of Western Europe.

But the company has reassured union officials that the company's sites are to be reviewed on an individual basis and that both North-East sites are in a sound position.

The Spennymoor plant, which employs 600 people, produces kitchen appliances for the domestic market, tailored to meet British tastes.

Flymo, in Newton Aycliffe, which has 200 full-time workers plus seasonal staff, is also said to be in a strong position as half of all lawnmowers sold in the UK are produced by Flymo.

Gerry Hunter, from the Amicus union, which represents the majority of staff at both sites, said: "They are saying there will be some factory closures.

"But we believe we should be okay at Spennymoor and positively so. There will be a lot of investment over the next three years, which is a good thing for Spennymoor and gives us a bit of longevity regarding job security.

"They are telling us that Newton Aycliffe is a very profitable business and they don't sell profitable businesses.

"They say they have got a big market share and they increased their production by five per cent last year."

A company spokesperson said: "It is far to early to entertain any speculation about specific sites, which are all reviewed regularly.

"There are proposals to spin off the outdoor products base to run separately, which could include Flymo, at Newton Aycliffe, but no decisions will be made until around the middle of 2006."