CUTBACKS AT ORREFORS KOSTA BODA
The negative development at Orrefors Kosta Boda, part of the New Wave Group of companies, has continued due to decreased sales in the main markets. In view of this, previous measures are not sufficient and further cost-cutting measures must be taken.
The intention is to reduce the workforce by approximately 115 employees at the company’s places of business in Sweden (Orrefors, Kosta and Åfors). The downsizing occurs mainly in production, but other departments in the company will also be subject to cutbacks. The measures are expected, along with other and previous decisions on cost-cutting and structural measures, to result in savings of approximately SEK 24 million annually.
The measures will be implemented during the first half of 2012 after trade union negotiations. The savings will be achieved gradually in the second half of 2012 and reach full capacity in 2013.
“It is very regrettable that we have to carry out these major cutbacks, but we must take vigorous cost-cutting measures and adapt production to the lower sales volumes that exist in our markets. We hope these measures will help us achieve acceptable profitability and thereby ensure continued Swedish manufacturing of high-quality glass products,” says Torsten Jansson, President and CEO of New Wave Group.
“It is an extremely heavy day today, but in order to secure the survival of Orrefors Kosta Boda we are forced to take necessary measures. The entire glass industry is currently going through a crisis and has done so for quite some time. We are of course affected by this but also by the current international economic crisis,” says Ann Gustafsson, CEO of Orrefors Kosta Boda.
A press conference will be held at Kosta Exhibition Hall at 1 pm today.
Gothenburg 12 December, 2011
New Wave Group AB (publ)
For more information, please contact:
Torsten Jansson CEO Phone: +46 (0)31-712 89 01
Rolf Karp dCEO Phone: +46 (0)31-712 89 05
Lars Jönsson CFO Phone: +46 (0)31-712 89 12
New Wave Group in Brief
New Wave is focused on establishing, acquiring and developing brands primarily in the promotion and leisure sectors. New Wave operates in two business areas; the market for promo products through sales to independent promo companies, and the retail market via mainly sportswear, gifts and shoes retailers. By operating in these two market segments the Group achieves better risk diversification and coordination advantages.