New York (CNN Business) Swedish appliance maker Electrolux says it will close a manufacturing plant in Memphis, as the household appliance business contends with higher steel prices and Sears' bankruptcy.

The Memphis factory, which builds Frigidaire and Electrolux ovens and employs about 530 people, will shut down by 2020, according to Electrolux.

The company said the closure is part of a $110.5 million plan to streamline manufacturing that includes shuttering a second plant in Santiago, Chile and upgrading a facility in Springfield, Tennessee.

Electrolux, which owns Frigidaire, said in a press release that it is rethinking its strategy "in light of changing market dynamics, increased raw material costs and current trade policy."

President Donald Trump implemented steep tariffs on most steel and aluminum imports last year. Trump said the move was meant to boost domestic production of the materials, but trade groups warned that it would lead to soaring costs for goods that are made with steel and aluminum.

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