FinnvedenBulten is to make 50 staff redundant as the Metal Structures division streamlines its foundry operation by concentrating European magnesium die casting to the factory in Poland.
The Swedish site will be streamlined for aluminium die casting and the company’s intention is to find new owners for it. The measures are expected to result in annual profit improvements of around SEK20m (US$25.8m)
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“We have for a long time been experiencing profitability problems in the foundry operation in Sweden,” said FinnvedenBulten president and CEO, Johan Westman.
“Despite great determination and a series of measures, we have not managed to achieve the necessary profitability improvements. By streamlining the operation, Finnveden Metal Structures will achieve better capacity utilisation.”
The restructuring means production of die cast magnesium components will be concentrated to Poland and the foundry in Sweden will be downsized and streamlined for die cast aluminium production.
“In Sweden, we are cutting 50 jobs but we will employ more people in Poland, 15 new people in Poland,” a FinnvedenBulten spokeswoman told just-auto from Sweden.
Implementation is scheduled for completion in 2013 with union representatives having been informed and summoned to negotiations, which the company says “will begin as soon as possible.”
The restructuring is expected to cost around SEK40m this year and SEK30m of these costs will affect the second quarter in the form of depreciations and restructuring reserve.
The measures are expected to result in profit improvements of around SEK20m from 2014.
Once streamlining is accomplished, Finnveden Metal Structures will look for new owners of the aluminium operation in Sweden and focus on its multi-material offering linked to magnesium die casting and sheet metal stamping.
“With focus on weight reduction in the automotive industry we see continued major opportunities ahead in magnesium components,” said Westman.
“By streamlining the foundry operation we will reduce complexity and strengthen our competitiveness within magnesium die casting in Europe.”
