AGA launches efficiency improvement program
AGA LAUNCHES EFFICIENCY IMPROVEMENT PROGRAM On Tuesday, AGA announced an efficiency improvement program that will strengthen competitiveness and improve service to customers. The program will have a positive impact on earnings of about SKr 300m net next year, and SKr 800m in the year 2001 and thereafter. The net results of 1998 will not be affected. In the period 1998-2000 AGA will reduce the number of employees by a further 1,300 people (12 percent), in addition to the 500 in 1997. AGA´s President and CEO, Lennart Selander, says that efficiency will be improved in several areas. The 350 production units for cylinder gases, currently located throughout the world, will be reduced to 290 and operations will be concentrated to larger units which will allow better utilization of resources. A large part of distribution to customers, depots and retailers will be outsourced to transport companies. The large production plants will be complemented with modern monitoring systems so that they can be remote-controlled from joint control rooms, which will raise efficiency. Other areas affected are sales, customer service, and administration which will be simplified by coordinating more business processes internationally while advanced information technology will be applied. "AGA will become more efficient," says Lennart Selander. "We will be able to produce and sell more efficiently and provide our customers, particularly those with multinational operations, with a better service." "Last year, we reduced the workforce by more than 500 people. When our new efficiency program is completed in three years, we will have reduced the number of employees by a further 1,300 people. These reductions will affect all countries in which AGA operates." The total cost of this program will be SKr 500m, charged to the earnings as the costs arise. Next year the positive effect on AGA's earnings will be about SKr 300m, and SKr 800m in the year 2001 and thereafter. The net results of 1998 will not be affected. For further information, please contact Lennart Selander, President and CEO, telephone +46 8 731 1943 Lidingö March 3, 1998 Lennart Selander President and CEO ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are ready for download: http://www.bit.se/bitonline/1998/10/28/19981028BIT00110/bit0001.doc