FinnvedenBulten Expands in Poland and Restructures Foundry Operation

2012-09-10

In order to realize FinnvedenBulten’s long-term strategy and strengthen its position in cast components, the company is investing and restructuring in its foundry operation. The change aims to enable further growth and is an important part of the cost-cutting programme initiated during the year. The measures are expected to generate savings of SEK15~20 million annually.
The planned measures mainly involve an expansion of the Finnveden Metal Structures division’s operation in Poland, restructuring and optimisation of capacity utilisation between the factories in Poland and Sweden, as well as improvement and streamlining measures. The measures will lead to better utilisation of the production structure and more efficient use of resources.
The total investment is expected to be around SEK17 million and the restructuring costs in the region of SEK3 million. The measures are anticipated to achieve their full effect from the third quarter of 2013.
“The expansion in Poland and restructuring of the foundry operation are important aspects in improving the cost structure, but also an investment in future growth. We have evaluated various options and found that the decided measures strengthen our position, give the operation good flexibility and yield the necessary improvements in profitability,” says Johan Westman, President and CEO of FinnvedenBulten.
In total, approximately 40 people will be affected in the Swedish operations and the Polish operations will increase by approximately 30 people. Negotiations with union representatives have begun. The changes are planned to take place in 2012~2013.