VARNAMO, Sweden, Oct. 22, 2002 (PRIMEZONE) -- Finnveden's Board of Directors has assigned the business area managements of Sheet Metal Components and Fasteners the task of implementing changes in the production structure within their respective business areas.
In line with the Sheet Metal Components business area's strategy of streamlining its production structure and concentrating production, the production unit in Gnosjo is to be closed. All 90 employees will be given notice of termination. About 40 of these employees will be offered new employment at another location.
The management of the Fasteners business area intends to streamline the business area's production structure and concentrate production to fewer plants. As a result, closure of the plant in Kalix is planned. Negotiations with the trade unions in accordance with the Codetermination in Industry Act are to be initiated.
The above projects are part of the planned restructuring measures announced in Finnveden's six-month report earlier this year.
"Both business areas have independently built strong positions as suppliers to the automotive industry," said Tommy Boork, CEO of Finnveden. "In order to retain and develop these positions, it is essential that we are able to offer a cost-efficient production system. The measures we are taking will create a more competitive structure."
Further information is available from: Finnveden AB (publ) Tommy Boork, CEO tel.: +46 070-511 21 13
Finnveden is an international engineering group, with strong market positions in the automotive industry. Products include fasteners, engine components and sheet-metal components. Finnveden is listed on Stockholmsborsen (Stockholm Exchange) and has annual sales of about SEK 4.5 billion, with 3,500 employees. Additional information is available on Finnveden's website: www.finnveden.se
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