Plastal to close down production in Kristinehamn

Plastal to close down production in Kristinehamn Due to changed market structure, Plastal Sweden has during the last year been struggling with some overcapacity. This has primarily been concentrated to the production unit in Kristinehamn, which for a long time has had poor order back log and thereby shown unsatisfactory results. Decision has therefore been taken to start negotiations with the unions in order to close down the operations within Plastal Kristinehamn. The unit has been focusing on production and painting of bumpers produced according to the RIM-methodology. As a consequence of these restructuring measures, Plastal will reduce the number of employees in Kristinehamn with approximately 67. Plastal will try to assist in finding new alternatives for the RIM-production, while the volumes of painted components will be moved to other Plastal-entities. The closedown will be finished by this summer. For further questions please contact Cecilia Lager, Vice President Investor Relations & Communication, tel +46 8 459 59 41 Paul Öhman, President Plastal AB, tel +46 708 187 110, or Eddie Westergren, Responsible Plastal Kristinehamn, tel +46 70 638 70 91. Gränges is an international industrial group focused on value-added products based on aluminium and plastics. The products range from extrusions, heat transfer material and foil to components and systems in plastics to the transport industry. The group is one of Europe leading companies within its field with customers in the transport, engineering, construction and packaging industries. Gränges is quoted on the OM Stockholm Exchange "O-list". Visit Gränges web site on the Internet: www.graenges.se ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/02/25/19990225BIT00070/bit0001.doc http://www.bit.se/bitonline/1999/02/25/19990225BIT00070/bit0002.pdf