Concentric Consolidates Its Hydraulics Capacity in Europe
Concentric AB (STO:COIC) today announces that it intends to close its hydraulics assembly plant in Skånes Fagerhult, Sweden in response to the economic downturn.
“We sincerely regret the impact this action will have on our employees in Skånes Fagerhult,” says David Woolley, Chief Executive Officer. “However, declining market conditions allow that we now consolidate our hydraulics capacity in Europe, which will better align our production with the market and help improve our long-term competitiveness.”
The closure is expected to be completed in the second quarter of 2013. 70 people will be affected by the closure.
The plant closure is still subject to consultation with employee works council and unions. Concentric expects to take non-recurring charges in the range of SEK 30 million to SEK 40 million. These charges include relocation costs for equipment and tooling, severance and retention payments to employees, non-cash asset write-offs and other costs related to the plant closure. Concentric anticipates annual savings of SEK 20 million beginning in mid-2013 once the relocation is completed.
Concentric is an innovator in flow control and fluid power, supplying proprietary systems and components for trucks, buses and industrial vehicles, worldwide. The company encompasses two technology/product areas, hydraulics and pumps for diesel engines. The hydraulics range is supplied under the Haldex brand name and the pumps are branded Concentric.
With 1,220 employees and annual sales of over SEK 2.2 billion, Concentric AB is listed on the Stockholm Stock Exchange (www.concentricAB.com).
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Wim Goossens (SVP Europe & Rest of World)
tel: +33 6 71 00 48 75
Lena Olofsdotter (SVP Corporate Communications)
tel: +46 708 326 854