Electrolux halves redundancies in Italy under revised industrial plan

ROME, Nov 4 (Reuters) - Appliance maker Electrolux has agreed with the Italian government and unions to nearly halve planned job cuts in the country and invest more than €100 million ($112 million), the unions and the industry minister said.

• The Swedish group's revised plan envisages a maximum of 918 redundancies among permanent staff over the next three years, down from 1,719 initially announced in May, sector unions and the ministry said in separate statements

• The departures will be managed on a voluntary basis with incentives, and will now exclude compulsory layoffs

• The new strategy targets annual production of about 3.2 million units by the end of the plan in 2029, down from 3.6 million now, according to the Uilm trade union

• The deal will maintain production at all of Electrolux's Italian sites, including its kitchen hood-making facility in Cerreto d'Esi, near the city of Ancona, which the group initially planned to close, retaining all 149 staff there as the group seeks a new investor for the plant

• Electrolux said the total reduction in its headcount over the next three years would include the Cerreto staff, bringing the total to 1,067 workers

• The deal is "a joint solution aimed at boosting the competitiveness of the group's Italian operations while preserving their long-term sustainability amid growing competitive pressures in the European market," the group said.

• The appliance group also called on European institutions to recognise its sector as a strategic industry and adopt measures to support manufacturers through lower energy costs

• The deal, struck after 30 hours of talks in Rome between the company, unions and government officials, will secure "long-term production prospects in Italy", the industry ministry said

• Uilm said workers would vote on the deal in the coming days

• Electrolux announced the restructuring plan this year as it moves to boost competitiveness amid weak demand and pressure from lower-priced rivals.($1 = 0.8905 euros)

(Reporting by Giulia Segreti in Rome; Editing by Clarence Fernandez and Keith Weir)