STOCKHOLM, Sweden — April 24, 2026 — Swedish appliance manufacturer Electrolux and Chinese appliance giant Midea have entered a long-term strategic partnership to jointly design, manufacture and sell refrigeration and laundry products across North America, the companies announced.
The 15-year agreement, set to begin this summer, is aimed at driving profitable growth through innovation, cost efficiencies and increased operational flexibility. Electrolux said the pact also supports its broader effort to restructure and strengthen its North American business, which accounts for roughly one-third of its global revenue.
Three Joint Ventures Planned
The agreement establishes three separate joint ventures spanning product development, manufacturing and sales operations.
- A 50-50 sales joint venture focused on refrigeration will co-develop a full line of products under both brands, with operations expected to begin in the third quarter.
- A manufacturing joint venture in Juarez, Mexico, will see Midea acquire a 65% stake in Electrolux’s refrigeration facility, while Electrolux retains 35% and maintains exclusive control of its laundry production.
- A third venture will convert Electrolux’s Anderson, South Carolina, refrigeration plant into a laundry production facility, with Electrolux holding a 55% stake and Midea 45%.
Electrolux will continue to operate its existing facilities in Springfield, Tennessee, and Kinston, North Carolina, along with ongoing laundry operations in Juarez.
Building on a Longstanding Relationship
The partnership builds on more than two decades of collaboration between the companies. Executives said the agreement combines Electrolux’s established market presence and consumer insights with Midea’s manufacturing scale, supply chain capabilities and production flexibility.
Midea Group, one of the world’s largest appliance manufacturers, reported approximately $63.7 billion in global sales. Its U.S. operations include Midea America, headquartered in New Jersey, with research and development centers in Kentucky and California.
“This partnership marks a major milestone in the execution of our strategy and positions us to accelerate profitable growth.”
Yannick Fierling, President and CEO, Electrolux Group
Restructuring Amid Market Pressures
The announcement comes as Electrolux continues to navigate a challenging North American market. For the first quarter ended March 31, the company reported an operating loss of $94 million and an 11.6% year-over-year sales decline in the region, citing tariff pressures and weakened consumer demand.
As part of the transition, Electrolux expects to record approximately $260 million in restructuring costs tied to the phaseout of refrigeration production in Anderson and associated workforce reductions affecting about 1,500 employees.
The companies also plan to invest approximately $119 million over the next three years to modernize the Juarez facility and retrofit the Anderson plant. Electrolux said more than 1,200 workers are expected to be hired in 2027 and 2028 to support the expanded laundry production.
Long-Term Outlook
Following the initial 15-year term, the agreement will automatically renew in successive 10-year periods unless terminated by either party with three years’ notice.
The partnership follows a previously reported but unsuccessful acquisition attempt by Midea in 2023, when the company offered $3.6 billion for Electrolux. The proposal was ultimately rejected by Electrolux and its majority shareholder.
