Semcon makes changes to the business

Semcon is continuing to streamline its business. Semcon’s board has decided to sell off all the activities in the Zpider business area. Furthermore Henrik Sund will leave his position as Semcon’s CEO. Additionally a cost-cutting scheme is being introduced to reduce overhead costs.

Semcon today is on the brink of a global expansion with fantastic business opportunities. To take advantage of these opportunities means we must focus on our core business in product development and technical information. Since its start, just over seven years ago, the Zpider business area has been very successful but doesn’t fit in to this future scenario.
“Fortunately enough, we are seeing very considerable growth and demand at Zpider, but for Zpider to have the best possible chance to further develop its business, we think they will achieve this better on the back of new ownership,” says Kjell Nilsson, Semcon’s Chairman of the Board.
The sales process will start immediately. The aim is to have sold the business by the end of the year.

Change of CEO
Semcon has today terminated Henrik Sund’s employment as the company’s CEO. The recently appointed CFO Björn Strömberg has been appointed acting CEO. When a new CEO is appointed he will revert to his role as Semcon’s CFO. By way of introduction Semcon’s Chairman, Kjell Nilsson will be working on the process of change and expansion.

Cost-cutting scheme
To underpin our continued success, a cost-cutting scheme is being started immediately aimed at reducing overheads at a central level. The scheme will produce annual savings of at least SEK 30 million in Sweden and SEK 15 million in Germany. Measures in the scheme will be carried out before the year’s end and their full effect is expected to be seen in the 2008 financial year.

More information about the above changes will be presented in conjunction with Semcon’s interim report to be published on 22 August.