The review of the Group's production structure in high-cost countries that was announced in 2008 has now been completed, and has been expanded to include around forty restructuring projects which will affect all the Group's divisions. The expanded program involves further closures of 15 production units and a move to final assembly work in the remaining units in high-cost countries. In addition, it has been decided to carry out a consolidation of administrative support functions.

 

It is estimated that the expanded program will cost SEK 1,180 M (including the SEK 247 M that was set against earnings in the third quarter), compared with the SEK 800 M that was announced earlier. This figure also includes both the relocation of the production plant at Barkan on the West Bank and the effect of the weakened krona since the program was settled in August 2008.

 

The program is expected to be expensed in its entirety in 2008 and has a payback time of 2 to 3 years. A total of 1,800 employees will be affected by the measures, compared with the 1,200 announced earlier.

 

The fourth quarter will also be burdened with one-off costs totaling about SEK 80 M relating to the provision of supplementary lock protection in the Swedish operation.

 

 

 

Johan Molin, President and CEO, tel no: +46 8 506 485 42

Tomas Eliasson, CFO and Executive Vice President, tel no: +46 8 506 485 72