MALMÖ, Sweden--(BUSINESS WIRE)--Regulatory News:
With the aim of strengthening the Group´s competitiveness, the steel service company BE Group (STO:BEGR) will initiate negotiations on personnel reductions within the Group's operations in Sweden and Finland.
The number of employees is expected to be reduced by a total of approximately 140 full-time positions. In Sweden some 75 persons will be given notice. Within the Finnish operations, negotiations will simultaneously commence to reduce the number of employees by about 60, but also to enable future layoffs. Within the Group's operations in other markets, the proposal indicates only limited reductions.
“2012 has been a difficult year for Swedish and Finnish industry,” comments BE Group's President and CEO Kimmo Väkiparta. “This has spilled over into the supplier chain with reduced delivery volumes as a consequence. The prospects for the future are still hard to judge, and thus we see a need to adapt the Group’s operations to the current situation. It is unfortunate when this affects our employees, but we strive to find them the best possible solution.”
The proposed measures will yield annual cost reductions of 65 MSEK and are forecast to gradually begin having an effect in the second quarter of 2013. One-time costs are estimated at 30-35 MSEK and these costs will be taken in the first quarter of 2013, while the cash flow will mainly be affected during the second and third quarters.
“Despite the difficulties during last year we have a strong market position within our segment in Sweden and Finland, and are working continuously to strengthen our product and service offerings. With reduced costs we see great opportunities to create new solutions for our customers and win market share,” concludes Kimmo Väkiparta.
BE Group, listed on the NASDAQ OMX Stockholm exchange, is a trading and service company in steel and other metals. BE Group provides various forms of service for steel, stainless steel and aluminium applications to customers primarily in the construction and engineering sectors. In 2011, the Group reported sales of SEK 5.9 Bn. At year-end 2012, BE Group had approximately 900 employees in nine countries, with Sweden and Finland as its largest markets. The head office is located in Malmö, Sweden. Read more about BE Group at www.begroup.com.
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