Electrolux Professional purchases a wide range of raw materials and components from external suppliers. We closely monitor the quality and reliability of these suppliers. In total, Electrolux Professional contracts around 3,300 suppliers.
Purchased materials represent about 60% of our product cost. Steel, both austenitic and carbon steel, and mechanical components are traditionally the largest commodities, while electronics has increased substantially in recent years.
In 2021, expenditure on direct materials and products totaled approximately SEK 3bn, which amounts to approximately 60% of total purchasing.
Raw material costs have increased substantially during 2021 due to higher world market prices. In addition, the shortage of components has forced us to occasionally buy them at much higher spot-market prices. In 2021, the direct materials purchased were primarily mechanical materials such as steel, aluminum, and cast iron, amounting to approximately 50% of total direct material expenditure.