SOLNA, Sweden, May 21, 2003 (PRIMEZONE) -- NCC Property Development is currently restructuring its organization. As a result, 100 of a total of 200 employees will become surplus to requirements. In Sweden, nearly 50 employees will be laid off. The restructuring measures should be viewed in the light of the sharp decline in the market for commercial premises.
The NCC Group implemented a comprehensive restructuring program called Turnaround during 2002, which resulted in approximately 2,500 employees having to leave NCC, meaning about 10 percent of the Group's total workforce of 25,000. Turnaround has been implemented as planned. However, now that the downturn in the office market has intensified, additional measures are required within NCC Property Development. A number of employees in Sweden, Norway, Denmark and Finland will have to leave the company. Operations in Poland, Germany, Hungary and Belgium will be phased out completely.
"We are compelled to implement this restructuring because of the weak market conditions we are facing in the next few years. We have to adapt our organization to the prevailing market," said Mats Wappling, President of NCC Property Development.
Negotiations with trade unions regarding the organizational changes are essentially completed.
The restructuring costs will affect the NCC Group's earnings during the second quarter of 2003.
For further information, please contact: Mats Wappling, President NCC Property Development Tel +46 8 585 51770 or +46 70 645 0321 Gisela Lindstrand, Press Relations Manager NCC AB Tel +46 8 585 52346 or +46 70 392 9500
All of NCC's press releases are available on www.ncc.info
NCC is one of the leading construction and property development companies in the Nordic region. NCC had in 2002 sales of SEK 45 billion, with 25,000 employees.
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