After a liaison committee meeting today it was decided to close the production of the group’s spinning mill in Vejle during the first half year of 2012.
The closure will affect 63 of the 74 staff members.
The closure takes place based on the competitive situation on the world market for carpets. The aim is to strengthen the group’s competitive position further. The production of carpets will continue in the group’s 3 other Danish factories, where 300 persons are employed.
Relocation and outsourcing of the production is not expected to affect the result before taxation significantly this year, but in the long term we expect an annual saving of approx. 10 DKK million as well as a one-time income from the sale of building. Sale of building is not expected to take place until 2013 at the earliest.
Moreover, refer is made to the company’s stock exchange announcementof 12. December 2011.
