© pinonsky Electronics Production | October 07, 2015

Husqvarna to restructure - employees will be affected

Husqvarna Group will implement changes in the manufacturing and logistics structures in Sweden, the US and China.
The cost reductions will be utilised for investments in profitable growth activities and to mitigate unfavorable currency impact going forward, the company states.

The measures are estimated to entail restructuring costs of around SEK 150 million (EUR 16.14 million), which will be provisioned for in the Group's income statement for the fourth quarter of 2015. The changes are gradually expected to lead to annual cost savings of around SEK 80 million (EUR 8.6 million), with full effect as of 2018.

"Manufacturing and logistics operations, including related ways of working has been one of our special focus areas lately. In respect of the production facility in Huskvarna we have invested in automation technology and changes in our production processes," says Kai Wärn, President and CEO of Husqvarna Group.

The changes affect staffing requirements and it is estimated that approximately 80 employees related to production will be affected. The personnel reductions are planned for 2015 and 2016, after negotiations with the labor union.

It has also been decided to invest in, and consolidate, the logistics and warehouse structure around the production facilities in Orangeburg and McRae, US, which will be implemented gradually during 2016 and 2017.

Furthermore, the Group's production facility in Shanghai will be consolidated into the Group's production plant in Changzhou, China. The change will be completed during 2016.


Please note the following: Critical comments are allowed and even encouraged. Discussions are welcome. Verbal abuse, insults and racist / homophobic remarks are not. Such comments will be removed.
Further details can be found here.
Load more news
July 18 2018 5:55 pm V10.0.0-1