Investments in Finland and Sweden increase efficiency and raise the service level
Press release
28 April 2008
BE Group has decided to invest SEK 30M to improve service and streamline operations in Finland and Sweden. The investments are in line with BE Group's strategy to increase investments in service in order to strengthen the Group's competitiveness, profitability and growth.
In Finland, the new plant in Lapua will be expanded and coordinated with existing operations. One of two plants in Lahti will also be shut down. Operations in the remaining plant will be expanded.
The investments and restructuring in Finland is estimated to lead to savings of SEK 10M per year and a reduction in working capital by SEK 35M. The investments will be completed by the end of 2009.
In Norrköping, a new hall for cutting with plasma technology is being built. The investment is estimated to result in increased sales of SEK 50M with good profitability and to be completed in the third quarter of 2009.
All newly constructed premises will be owned by real estate companies and rented by BE Group. This will help reduce capital accumulation.
- The increased service level will strengthen our competitiveness in the market, while contributing positively to our margins at the same time. Service makes up 35 percent of the Group's sales, and the target is to increase the percentage to 50 percent, a goal that we have already achieved with the Finnish operations.
- By concentrating production in Finland to fewer plants and investing in new technology in both Sweden and Finland, we will also increase efficiency, says Håkan Jeppsson, CEO of the Group.
For questions, please contact:
Håkan Jeppsson, president and CEO, Tel: +46 (0)705-50 15 17, email: hakan.jeppsson@begroup.com
The information is such that BE Group AB (publ) is required to make public according to the Swedish Securities Exchange and Clearing Operations Act and/or the Swedish Financial Instruments Trading Act. The information was released for publication on April 28, at 11:10 a.m.