Consultation process completed - Exel Composites will close its factory in Belgium
EXEL COMPOSITES PLC INSIDE INFORMATION 20 DECEMBER 2024 AT 14:00 EET
Exel Composites has completed the consultation process with its employees’ representatives regarding the previously announced intention to discontinue the production at its Oudenaarde factory in Belgium. As a result, Exel Composites will close the factory, and the employment of approximately 50 employees will end. The activities at the Oudenaarde unit will cease by the end of the first quarter of 2025. The closure of the factory is necessary to address loss-making activities.
The closure of the unit and the termination of employment of employees is expected to result in annual cost savings of approximately EUR 1.8 million, part of which will become visible in the second half of 2025. Exel Composites will record a one-time cash cost of approximately EUR 1.7 million and a one-time non-cash asset write-down of approximately EUR 2.5 million in the fourth quarter of 2024 as items affecting comparability.
The now completed consultation process was launched on 12 September 2024 as a result of a strategic factory review, which thoroughly assessed the factory’s role and future options.
"Following extensive consultations conducted in a good spirit, we unfortunately have to confirm that the closure of the Oudenaarde plant will proceed. We understand this is a very difficult situation for all employees concerned. I want to thank the employee representatives and the entire staff of the Oudenaarde unit for their constructive approach to this sensitive matter,” says Paul Sohlberg, President and CEO of Exel Composites.
Additional Information:
Lilli Riikonen, Head of Investor Relations
tel. +358 50 351 1128
Mikko Rummukainen, CFO
tel. +358 20 754 1335
Distribution:
Nasdaq Helsinki
Media
www.exelcomposites.com
Exel Composites in brief
Exel Composites is one of the largest manufacturers of composite profiles and tubes made with pultrusion and pullwinding technologies and a pultrusion technology forerunner in the global composite market. Our forward-thinking composite solutions made with continuous manufacturing technologies serve customers in a wide range of industries around the world. You can find our products used in applications in diverse industrial sectors such as wind power, transportation and building and infrastructure.
Our R&D expertise, collaborative approach and global footprint set us apart from our competition. Our composite solutions help customers save resources, reduce products' weight, improve performance and energy efficiency, and decrease total lifetime costs. We want to be the first choice for sustainable composite solutions globally.
Headquartered in Finland, Exel Composites employs over 600 forward-thinking professionals around the world and is listed on Nasdaq Helsinki. To find out more about our offering and company please visit visit www.exelcomposites.com.
Exel Composites Plc