Hanza launches efficiency program
Swedish contract manufacturer Hanza launches an efficiency program following the acquisition of EMS provider Orbit One. The efficiency program is described as an important step in the integration and to meet a slightly weaker market.
At the turn of the year, Hanza acquired Orbit One, a Swedish electronics manufacturer. As previously reported by Evertiq, the deal has – among other things – broadened Hanza's expertise and customer base, creating new opportunities for growth in the coming years.
Hanza has previously stated that the group's margin is affected by the fact that Orbit One has a lower operating margin than Hanza. Furthermore, the company stated that a general market change at the beginning of 2024 has had an impact on volumes in some parts of the group.
Against this backdrop, Hanza is now launching an efficiency program, something that includes personnel reduction.
The program is aimed at creating synergies in sales, purchasing, IT and production. Another aim is to reallocate resources and optimise the workforce according to customer needs, the company states in a press release.
In addition to improving profitability, these changes are aimed at making the acquired entities less sensitive to market fluctuations.
As a result of the program, Hanza is planning to reduce the workforce by 50 people at the production unit in Ronneby. A smaller staff reduction is also being considered in Prabuty, Poland. Both of these units were added through the acquisition of Orbit One.
"These are tough but crucial measures to maintain our customers' competitiveness and thus ensure a continued positive development for HANZA", says Erik Stenfors, CEO Hanza in the press release. "We are optimizing the manufacturing in our production facilities and our shared service centers and therefore propose a reduction of the workforce - something we do with a deep sense of responsibility towards affected colleagues".
Hanza estimates that most of the program will be completed during the third quarter of 2024 and that the full financial effect of the program will be achieved by the end of 2024
