State: Electrolux not required to repay $100M in Tennessee

Friday, February 1, 2019, Vol. 43, No. 5

NASHVILLE (AP) — Tennessee officials say Swedish appliance maker Electrolux isn't legally required to repay $100 million in state incentives for its soon-to-be-shuttered Memphis factory.

The state's 2010 agreement with Electrolux didn't include clawback provisions to recoup money if job thresholds aren't met.

Economic development department spokesman Scott Harrison says Electrolux committed to create 1,240 jobs in Memphis and last reported 1,100-plus employees in 2017. It currently employs about 530.

Electrolux plans to stop Memphis' production within two years, while investing $250 million to consolidate U.S. cooking manufacturing into its Springfield, Tennessee, facility.

Harrison says Electrolux's Memphis project received a $97 million grant and $2.6 million of a $3.1 million training grant.

A company spokeswoman said it's too early to say if Electrolux will repay the state, but it intends to meet its obligations.