Massive Memphis Investment In Electrolux 'Won't Pay Off'

January 31, 2019 8:49 AM

Memphis Mayor Jim Strickland said he heard of Electrolux leaving Memphis in a press release and that the news was "disappointing."

The company said it would move much of the work done here to Springfield, Tennessee Thursday morning. The company got a massive incentive package to build a plant here in 2010 (details below). 

Here's what Strickland said of the move Thursday afternoon:

“Electrolux may be leaving Memphis, but they aren’t leaving because of Memphis. To hear about this announcement in a press release after being told a month ago that the plant wasn’t closing is disappointing to say the very least," Strickland said. “There is some consolation that Electrolux has committed to work with employees by allowing them to have time to find other opportunities, and from a community perspective, we will do all we can to help them find other employment.

"In 2010, the state, county and city acted in good faith and made an unprecedented investment in this company and in Memphis.

Just like they are exercising their option to leave, we will exercise our option to vigorously defend our investment. With a tough global economy, rising tariffs and losing a major product retailer, they are making business decisions. This in no way will affect our determination to continue to recruit new companies and jobs to our city. We are meeting with Electrolux officials tomorrow.”


Here's what U.S. Rep. Steve Cohen said of the move:

“I’m very disappointed that the employees of Electrolux learned today that Memphis’ economic development investment in one company’s future apparently won’t pay off.

The company’s abandonment of Memphis will mean potential financial hardship for its employees and suppliers, and should result in more careful review of promises made by corporations about local job creation in the future.”

Here's what taxpayers gave the company in 2010:
• Two parcels of free land totaling 800 acres in Pidgeon Industrial Park

• $40 million from city and county

• Additional $2 million from city/county for ancillary costs

• 15 year PILOT abating 90 percent city and 75 percent county property taxes

• $95 million cash grant from state of Tennessee

• $3 million federal grant from Delta Regional Authority Continue Reading


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