FinnvedenBulten restructures foundry operation and concentrates its European magnesium die casting to Poland
In order to carry out FinnvedenBulten AB’s (“FinnvedenBulten”) long-term strategy and improve profitability for die cast components, the Finnveden Metal Structures division intends to streamline its foundry operation by concentrating its European magnesium die casting to the factory in Poland. The factory in Sweden will be streamlined for aluminum die casting and the company’s intention is to find new owners for it. The measures are expected to result in annual profit improvements of approximately SEK 20 million.
“We have for a long time been experiencing profitability problems in the foundry operation in Sweden. Despite great determination and a series of measures, we have not managed to achieve the necessary profitability improvements. By streamlining the operation, Finnveden Metal Structures will achieve better capacity utilization and reduce costs, which is a prerequisite for good, sustainable profitability in the foundry operation,” says Johan Westman, President and CEO of FinnvedenBulten.
The planned restructuring means that production of die cast magnesium components will be concentrated to Poland and the foundry in Sweden will be downsized and streamlined for die cast aluminum production. Implementation is scheduled for completion in 2013. In total 50 people will be affected by the restructuring. Union representatives have been informed and summoned to negotiations, which will begin as soon as possible. The restructuring is expected to entail costs of approximately SEK 40 million in 2013: SEK 30 million of these costs will affect the second quarter in the form of depreciations and restructuring reserve. The measures are expected to result in profit improvements of approximately SEK 20 million from 2014.
When the planned streamlining is finalized, Finnveden Metal Structures intends to find new owners for the aluminum operation in Sweden and thereafter focus fully on its multi-material offering linked to magnesium die casting and sheet metal stamping.
“With focus on weight reduction in the automotive industry we see continued major opportunities ahead in magnesium components. By streamlining the foundry operation we will reduce complexity and strengthen our competitiveness within magnesium die casting in Europe,” says Johan Westman.
For further information, please contact:
Johan Westman, President and CEO, FinnvedenBulten
Kamilla Oresvärd, Vice President Corporate Communications, FinnvedenBulten
Tel: +46 31-734 59 00, e-mail: media@finnvedenbulten.com
Note: The information in this announcement is required to be disclosed by FinnvedenBulten AB under the Swedish Market Securities Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 14:00 CET on May 29, 2013.
FinnvedenBulten develops and manages industrial businesses, offering products, technical solutions and systems in metallic materials. The Group operates as a business partner to international customers in the engineering industry, primarily the automotive industry. FinnvedenBulten is structured into two divisions – Bulten and Finnveden Metal Structures – both with strong positions in their respective customer segments. FinnvedenBulten is listed on NASDAQ OMX Stockholm. Further information at www.finnvedenbulten.com.
Tags: