LEAX Group takes action after seeing a decrease in demand from Covid-19

(English)

LEAX Group takes action after seeing a decrease in demand from Covid-19

LEAX Group is forced to act quickly and adapt its operations to an upcoming decline in demand from Covid-19. We are currently seeing a significant volume decline with immediate effect. As consequence, LEAX is reviewing its staffing from the units affected by this as well as central functions and planning for drastic reductions. In addition, an analysis of all other costs is ongoing.

"The current development in Europe where a lot of our customers are closing down is extremely serious. We need to take actions to adjust and secure the future for our company", says Henrik Fagrenius, CEO LEAX Group.

(Svenska)

LEAX Groups verksamheter anpassar sig mot en kommande minskad efterfrågan på grund av Covid-19. Vi ser idag betydande volymnedgångar med omedelbar verkan. Detta leder till att LEAX Group ser över sin bemanning på berörda enheter samt centrala funktioner och planerar för drastiska nedskärningar genom i första hand korttidspermitteringar. Vi ser även över våra omkostnader.

”Den utveckling vi för närvarande ser i Europa, där våra kunder stänger ner sin produktion, är mycket oroande. Att fatta beslut som detta är absolut nödvändigt för att anpassa verksamheten och säkra företagets långsiktiga överlevnad.”, säger Henrik Fagrenius, CEO LEAX Group.

 

Henrik Fagrenius, President & CEO
E-mail: henrik.fagrenius@leax.com

 

About LEAX:
LEAX Group AB (publ) is the parent company of a group (“LEAX Group”) with about 1 200 employees. LEAX has operations in Köping, Falun and Falköping in Sweden, Riga and Rezekne in Latvia, Curitiba in Brazil, Detmold in Germany, Mezökövesd in Hungary and Wuxi in China. The company is a manufacturer of mechanical components and subsystems for the heavy vehicle industry, passenger cars, mining and construction industries and other engineering industries. LEAX Group also delivers customized gearboxes for various mechanical engineering industries. The Group have a turnover of more than SEK 1,8 billion on a yearly basis.