GÖTEBORG, Sweden--(BUSINESS WIRE)--Regulatory News:
In order to realize FinnvedenBulten’s (STO:FBAB) long-term strategy and strengthen its position in cast components, the company is investing and restructuring in its foundry operation. The change aims to enable further growth and is an important part of the cost-cutting programme initiated during the year. The measures are expected to generate savings of SEK 15-20 m annually.
The planned measures mainly involve an expansion of the Finnveden Metal Structures division’s operation in Poland, restructuring and optimisation of capacity utilisation between the factories in Poland and Sweden, as well as improvement and streamlining measures. The measures will lead to better utilisation of the production structure and more efficient use of resources.
The total investment is expected to be around SEK 17 m and the restructuring costs in the region of SEK 3 m. The measures are expected to generate savings of SEK 15-20 m annually and are anticipated to achieve their full effect from the third quarter of 2013.
“The expansion in Poland and restructuring of the foundry operation are important aspects in improving the cost structure, but also an investment in future growth. We have evaluated various options and found that the decided measures strengthen our position, give the operation good flexibility and yield the necessary improvements in profitability,” says Johan Westman, President and CEO of FinnvedenBulten.
In total, approximately 40 people will be affected in the Swedish operations and the Polish operations will increase by approximately 30 people. Negotiations with union representatives have begun.
The changes are planned to take place in 2012-2013.
NB The information in this announcement is required to be disclosed by FinnvedenBulten AB (publ) under the Swedish Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 13:50 CET on September 4, 2012.
FinnvedenBulten develops and manages industrial businesses, offering products, technical solutions and systems in metallic materials. The Group operates as a business partner to international customers in the engineering industry, primarily the automotive industry. FinnvedenBulten is structured into two divisions – Bulten and Finnveden Metal Structures – both with strong positions in their respective customer segments. FinnvedenBulten is listed on NASDAQ OMX Stockholm. Further information at www.finnvedenbulten.com.
Division Finnveden Metal Structures manufactures products in steel, magnesium and aluminium, or a combination of those materials. The main manufacturing processes are stamping, die casting and joining. The components include interior, chassis and body parts for the automotive industry, as well as customised components for general industry.
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