Componenta Alvesta to cease operations i
COMPONENTA STOCK EXCHANGE RELEASE 03.11.2003 AT 16.00
Componenta Alvesta to cease operations in May 2004
The personnel negotiations have been completed relating to the closing
down of the operations of Componenta Alvesta AB, a Componenta business
unit in Sweden. The Board of Componenta Alvesta decided on 3 November
2003 to run down the companys operations. The action to run down the
foundry will start immediately and the foundry will cease operations
by the end of May 2004.
Componenta announced in August 2003 that it was merging the operations
of Componenta Karkkila and Componenta Alvesta, two foundries of
similar size that were operating at low capacity usage. At the
beginning of October it was decided that the new foundry to be formed
from merging these operations would be located in Karkkila. It was
also decided to start personnel negotiations about closing down the
operations of Componenta Alvesta AB.
Componenta Alvesta had net sales in 2002 of EUR 12.1 million and
recorded an operating loss of EUR 1.3 million. The foundry employs 120
people.
Componenta offers work for the Alvesta personnel at the Karkkila
foundry, and provides support for example for setting up an own
business. Besides this an extra bonus relating productivity and
delivery certainty has been agreed with Componenta Alvesta personnel.
The new foundry in Karkkila will have annual net sales of EUR 26
million and a clearly positive operating result. The foundry will
create 50 70 new jobs and will employ altogether 180 200 people.
Componenta will record an estimated total of EUR 7 million in its
result for 2003 in one time writedowns and costs for closing down
operations arising from the merger of the Karkkila and Alvesta
operations.
Helsinki, 3 November 2003
COMPONENTA CORPORATION
Heikki Lehtonen
President and CEO
FURTHER INFORMATION
Heikki Lehtonen Lauri Huhtala
President and CEO Director, Foundries
Tel. +358 9 225 021 Tel. +358 50 581 0223
Componenta is a metal sector company with international operations and
production plants located in Finland and Sweden. The company's net
sales exceed EUR 180 million and the group employs about 1,700 people.
Componenta's shares are quoted on the Main List of the Helsinki
Exchanges. The groups customers operate in the heavy truck, power and
transmission, machine building and off-road industries. Componenta
specializes in supplying ready-to-install cast, geared and machined
components directly to the customers assembly line.
Componenta Corporation
Nuijamiestentie 3 C
FIN-00400 Helsinki , Finland
Tel. +358 9 225 021
Fax +358 9 2250 2721
http://www.componenta.com