Hexagon Composites' subsidiary Devold AMT is initiating a process with the employee representatives

Hexagon Composites' subsidiary Devold AMT has decided to initiate a process with the employee representatives, with the intention to move the remaining production of composite reinforcements in Langevåg in Norway to the company's factory in Lithuania. Up to 26 employees will be affected by the proposed decommissioning.

The decision is based on the deficit the business unit has had for several years. The company is experiencing positive growth, however the margins on the products that the company supplies have further fallen following the financial instability of the last few years. Devold AMT has therefore been compelled to adjust its cost level to the market conditions in which it operates.

"This is a regrettable, but necessary decision," says Kåre Dybvik, Managing Director at Devold AMT. "There will be a substantial gain from assembling all our production facilities in Lithuania and the company is reliant upon improving its margins in order to reverse the negative development."

The company's strategy is to be the market leader in the supply of composite reinforcements, and the move is part of positioning the company for continued growth in Europe. Further increases in production capacity in Lithuania are planned for the future. By making deliveries from Lithuania, the company will come closer to its clients in the European market and improve the efficiency of the logistics.

As one of the main players in the industry over the last 20 years, Devold AMT has built up experience and substantial expertise in the manufacturing of composite reinforcements. This expertise will be safeguarded in the company even though all the manufacturing facilities will be in Lithuania. The head office will remain in Langevåg.

In addition to the factories in Langevåg and Lithuania, Devold AMT has a subsidiary in North Carolina, in the U.S., that manufactures and supplies composite reinforcements to the American market.

Hexagon Composites ASA is a publicly listed group with its head office located in Ålesund, Norway. The group has 371 employees and had a turnover of NOK 846 million in 2010. The group develops and manufactures composite containers for the storage and transport of various gases under pressure, and stitched composite reinforcements that make windmills, boats and structures lighter and stronger.

For further information:
Erik Espeset, Group President, Hexagon Composites ASA
Telephone: +47 905 20 033 | E-mail: erik.espeset@hexagon.no

Kåre Dybvik, Managing Director, Devold AMT
Telephone: + 47 916 25 725 | E-mail: kd@amt.no

Knut Flakk, Chairman
Telephone: +47 997 46 000 | knut.flakk@flakk.no