G & L Beijer moves production to Sweden
G & L Beijer AB is completing the consolidation of the production structure within business area Refrigeration by moving the production of cooling batteries from Denmark to Sweden. The Danish sales organisation will remain in Denmark.
"The restructuring is a step in our continual, long-term rationalisation programme aimed at strengthening our competitiveness by reducing costs. As a result, we will increase the profitability of the manufacturing companies," says Joen Magnusson, Managing Director of G & L Beijer.
At the beginning of 2004, G & L Beijer decided to specialise the manufacturing units within the Refrigeration business area. The restructuring involved moving the production of stainless steel products in Denmark to Norway, whilst the production of dry coolers was moved to Sweden.
The new production structure involves increased specialisation with increased volumes and a clearer focus for the respective manufacturing units. This will contribute to increased efficiency. In Denmark, the restructuring involved redundancies, whereas a need for recruiting new staff arose in Sweden and Norway.
The changes have been implemented. The number of employees within business area Refrigeration's manufacturing companies, which amounted to 220, has been reduced by just under ten per cent. Cost savings and co-ordination benefits are estimated at SEK 7-8M on an annual basis and will make a full impact during 2005.
The consolidation will be completed by moving the remaining manufacturing of cooling batteries in Denmark to Sweden. The staff affected by the cut-back in Denmark will, as far as possible, be offered employment in Sweden. In this phase, the staff requirement will reduce by approximately 20. This will generate additional cost savings.
The restructuring is expected to be fully implemented during the first quarter of 2005.
Malmö, 14 September 2004
G & L Beijer AB
For further information, please contact:
Joen Magnusson, Managing Director
Telephone +46 40-35 89 00
Mobile +46 709-26 50 91
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