SEM AB to end production of unprofitable items
SEM AB to end production of unprofitable items SEM AB, a subsidiary of the listed Opcon Group, is terminating production of an ignition system to an export customer due to lower volumes and high cost of production. The termination will entail one-off costs of around SEK 5 million. These costs will be charged to results in the final quarter of 2002 and will thus affect the consolidated profit and loss for the Opcon Group and mean that the Group will not report a profit for the final quarter. The costs are mainly for the write-down of tools and materials. Changes to production will mean that the total number of employees will be reduced by around 20 people during the second quarter of 2003. SEM AB's investment in products and systems that are being adapted to meet new environmental requirements concerning reduced emissions from, for example, small engines, will not be affected. Organisational changes at Opcon The Group is currently carrying out several large and strategically important projects concerned with development, synergies between subsidiaries and alliances with other companies. Opcon's Board has decided to establish a new position within the Group with responsibility for technical issues. Lars-Olof Ottosson, formerly Managing Director of SEM AB, has been appointed to this new position. His duties will include Group responsibility for patent issues, management of joint projects at Group level, co-ordination of technical alliances and development of licensing business. Svein Valheim has been appointed as acting Managing Director of SEM AB. Svein Valheim is also Managing Director of the Opcon subsidiary, REAC AB (formerly SEM Drive AB). For further information, please contact: Sven G. Oskarsson, CEO, Opcon AB, tel +46 532 611 30, mobile +46 70 625 81 21 Göran Falkenström, CFO and deputy CEO, Opcon AB, tel +46 532 611 22, mobile +46 70 330 05 02 Lena Karlsson, head of information, Opcon, tel +46 532-611 34, mobile +46 70-326 74 03 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2003/01/15/20041004BIT20910/wkr0001.pdf