Ad
Ad
Ad
© joingate-dreamstime.com Electronics Production | January 25, 2013

Partnertech to restructure Nordic units

EMS-provider Partnertech is to restructure its Nordic units. This involves facility closures as well as staff number reductions.
In Norway an agreement has been made with the property owner to leave two out of three factory buildings and a decision has been made to relocate the unit in Vellinge to more cost effective premises in Malmö. The headquarter that has been located in the same premises as the Vellinge unit for the last four years, will also be moved to more suitable offices in Malmö. Simultaneously the number of employees is being reduced in many of the units for increased flexibility and increased proportion of employees in low-cost countries.

"The strategic work we are pursuing in order to expand our business and offer both flexibility and low-cost manufacturing in a number of market areas is our possibility to balance operations. The very strong fluctuations in several market areas in December showed that we still have work to do in order to increase our flexibility as we were not able to adapt our operations fast enough. At the moment we are working intensely with industrialization and increasing production from the new business we have gained lately but all of these will not be fully realized in the first quarter”, says Leif Thorwaldsson, President and CEO of PartnerTech.

Due to postponed or sharply decreased volumes from a number of customers late in the fourth quarter, PartnerTech will also report a decline in volume for the quarter of approximately 15 percent in local currencies and comparable units, compared to the same period 2011, which is lower than expected. At the same time earnings are negatively impacted by the costs of adaptation of the operations in our Nordic units.

Operating profit for the fourth quarter is therefore expected to be negative while operating profit for the full year 2012 will be positive and is estimated to approximately SEK 20-25 million.
Ad
Ad
Ad
Ad
Load more news
December 05 2018 3:01 pm V11.10.4-1