SEM gives notice of dismissal to 60 employees in Åmål

Opcon’s subsidiary, SEM AB of Åmål, Sweden, has today given notice of dismissal to 60 employees. The background to the dismissal notices is the final stage of the ongoing transfer of production of ignition systems for small motors from Åmål to Opcon’s factory in China, along with a planned adjustment of costs in order to meet lower delivery volumes to Saab during the first half of 2007. Next year Saab will complete its recall of vehicles for the exchange of ignition cassettes and SEM’s temporary increase in production to meet deliveries to Saab will come to an end.

“The adjustment in costs we are currently making is fully in line with previous announcements. It gives us stronger resources to increase our efforts concerning new products in the family of digital ignition systems we are developing. It also gives us better capacity as we aim to achieve profitable development of products and systems for energy optimisation within the framework of our new business area, Opcon Energy Systems, which will be Opcon’s main focus in coming years,” says Rolf Hasselström, CEO of Opcon.

SEM’s staff were informed during Wednesday and negotiations in accordance with legal requirements concerning co-determination in the workplace will be completed between the Metall trade union and SEM in the coming weeks. The staff who have been given notice will leave SEM starting on 1 March 2007.

“Naturally, it is very unpleasant for the people who have received notice, and it is painful to have to carry out this measure. At the same time we know there is good understanding within the Group about the absolute necessity of remaining profitable and highly efficient so that the positive development of recent years can continue and become even stronger in future years,” says Svein Valheim, CEO of SEM AB.

For further information, please contact:
Rolf Hasselström, President and CEO of Opcon AB, phone: +46 8-466 45 00, +46 70-594 79 60
Svein Valheim, Executive Vice President of Opcon AB, Managing Director of SEM AB,
phone: +46 532-611 00, +46 70-678 22 17

Opcon AB, Box 30, SE-662 21 Åmål, Sweden
Phone: +46 532-613 00, fax: +46 532-120 19


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