The Memphis factory, which builds Frigidaire and Electrolux ovens and employs about 530 people, will close in 2020 according to Electrolux.
The company said the closure is part of a $ 110.5 million plan to streamline production that includes shutters a second factory in Santiago, Chile, and upgrading a plant in Springfield, Tennessee.
Electrolux, which owns Frigidaire, said in a press release that it is rethinking its strategy "in light of market dynamics change, increased raw material costs and current trade policies."
Electrolux spokeswoman Eloise Hale refused to detail how the company has been influenced by commodity price increases and US trade policies, but she said steel is an "important material" for the company.
American appliances have also been hit by competition from cheaper products imported from abroad, Parks Associates analyst Brad Russell said.
It includes a plan to invest $ 250 million in an expansion of a 45-year-old plant in Springfield, Tennessee, about four hours northeast of Memphis.
But the expansion will not necessarily mean new jobs.
"The investment will go towards the modernization of the plant with automation and expansion of production," Hale said. "This is not about job growth."
The company's US portfolio includes plants in South Carolina, North Carolina and Minnesota where the company produces freezers, refrigerators and dishwashers .