The company, the world’s biggest home appliances maker, which owns brands including AEG, Flymo and Zanussi, said that "about half" of its 27 plants in high-cost countries would be axed as it accelerated a restructuring drive.

Up to 10 billion Swedish kronor (£750 million) would be spent over the next four years on revival proposals which would save between 2.5 and 3.5 billion kronor a year from 2009.

"The intention is to finalise most relocation by 2008 and that measures thereafter will refer mainly to normal efficiency improvements," the company said.

Hans Straberg, the Electrolux chief executive, said: "Consolidation and relocation of production and requirements for achieving long-term competitiveness and profitability."

Closures over the last year have included an American refrigerator plant, axed at a cost of 979 million kronor, a vacuum cleaner factory in Sweden and a cooker factory in France.

The company’s UK operations include cooker and lawnmower plants in County Durham.

Electrolux also announced a spin off of its lawnmower and chainsaw division which proved one of the group’s best performers in the last three months of 2004, with operating profits rising by 43 per cent, helped by strong European demand.

"The [division] continued to perform very well," Mr Straberg said, adding that the spin off would "create the best possible framework" for the unit’s development.

Other measures taken to cut costs will include the delisting from the Nasdaq exchange where Electrolux shares have been traded since 1987.

"Trading volumes in [Electrolux stock] is low and not justify a listing," the company said.

"In addition, capital markets are becoming increasingly global which reduced the need for listings on multiple exchanges."

In the UK, companies such as lastminute.com, ITV and mmO2 have also announced moves to drop New York listings, citing regulatory or cost reasons.

Electrolux's net fourth-quarter profits fell to 728 million kronor from 1.15 billion kronor a year before, with the decline exacerbated by the costs of closing French and Danish plants.

Underlying operating profits fell by 17.1 per cent to 1.43 billion kronor on revenues up 1.1 per cent to 28.6 billion kronor.

"We had a strong quarter for white goods in both North America and Europe," Mr Straberg said.

The company said that it expected "some growth" in European and American markets this year, although higher raw material costs would send operating profits "somewhat lower".

The overall report, however, was not as downbeat as analysts had expected. Electrolux shares soared 11.9 per cent to 164 kronor in Stockholm trade this morning.

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