Husqvarna Group has announced a strategic alliance with Flex Ltd., a leading global manufacturer. This collaboration includes the immediate sale of Husqvarna's manufacturing facilities in Orangeburg, South Carolina.
Under a long-term supply agreement, Flex will take on the production of Husqvarna Group's wheeled products and will also handle the assembly of handheld products for the North American market at the Orangeburg factory.
The partnership is designed to enhance profitability, improve capital efficiency, increase production flexibility, and bolster Husqvarna Group's competitiveness in North America. Flex will assume all manufacturing duties, and current employees at the Orangeburg location will be offered positions within Flex.
The collaboration is anticipated to result in cost savings of around SEK 350 million over the next five years. Husqvarna Group will face one-time costs of approximately SEK 250 million in the fourth quarter of 2024, with a smaller additional one-time cost anticipated in the first quarter of 2025.
