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Electronics Production | April 22, 2009

kk-group to lay off 26

Denmark-based kk-group is to lay off 26 staff in an effort to further adjust its organisation. Reasons are the stagnation of the wind power market and the current standstill of the Danish building and construction industry.
ELOGIC, which produces distribution switchboards and other electrical equipment, is affectd by the very low activity level in the Danish construction industry. Even the governmental aid package for renovation, will not remedy the situation in the short run. Consequently, the company sees the neccessity to downsize its workforce to ensure the capacity matches the current low demand. ELOGIC will therefore make minor adjustments in the design and production departments for electrical switchboards.

kk-electronic has also felt the effects of postponed wind turbine projects due to financial difficulties. As a consequence the company sees a decreasing demand for wind turbine controls. Published valuations of the future prospects for the wind energy markets conclude that the market will be stagnating until some time in 2010. As a reaction to these negative trends, kk-group has informed its employees, that downsizing kk-electronic is necessary in the short term, in order to balance capacity with demand.

”We do still have great expectations to wind power in the future, and our strategy is continuously to be ready to meet the future growth in the sector. We had hoped that further reductions of the workforce could be avoided, but the financial crisis is still creating delays in the development of wind energy projects. As a sub supplier to the industry and being a responsible company, we had to adjust to the changed market conditions. It is in the interest of both our employees and shareholders, that we maintain the ability to further develop our business in the long run,” says Tommy G. Jespersen, CEO in kk-group.

"Experiencing major variations in demand in the wind power market is not any news, - positive as well as negative. Our ability to adjust the organisation and align capacity with demand is therefore of vital importance. We are aware of the negative implications for our employees, and of course we are trying to mitigate the impact on the staff involved," continues Tommy G. Jespersen.

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