KUNGSBACKA, Sweden, Dec. 8, 2003 (PRIMEZONE) -- Elanders:
-- Shuts down operations in Berlings Skogs AB in Trelleborg
-- 48 employees given notice
-- Operations will be concentrated to Malmo
-- The estimated cost of closing down Berlings Skogs AB will
charge this year's profits but will not affect the forecast
previously given by the Group for 2003 of approximately MSEK 50 in
pre-tax profits and a continued positive cash flow.
Elanders currently has operations in Skane at Elanders Skogs Grafiska AB in Malmo and Berlings Skogs AB in Trelleborg.
Elanders continuously adjusts capacity based on market conditions in the regions and segments where the Group is active in order to be competitive in the long run. The Group also works successfully on raising productivity in its various production units, which gradually increases available capacity. Large volumes, primarily in the mobile telephone segment, have previously been placed in Elanders' foreign plants as a result of customer relocation. The market in the Skane region for certain types of printing is and has been in decline.
With all these factors combined it is no longer profitable for Elanders to maintain two similar operations so geographically close to each other in Skane. Operations in Berlings Skogs AB in Trelleborg will be phased out and 48 employees have been given notice conditional upon customary union negotiation, which will begin immediately. The operations are expected to be shut down by the end of the first quarter in 2004.
The decision to close the unit in Trelleborg and direct resources to the unit in Malmo is based on the strategic importance for the Group's development Elanders places on being located in Sweden's third largest city and within the Oresund region.
The cost of closing down the Trelleborg unit charges Group profits for 2003. The previous forecast presented by Elanders for 2003 of pre-tax profits of around MSEK 50 and a continued positive cash flow remains the same.
For further information please contact: Patrick Holm Monica Banck Peter Hjelm President and CEO Human Resource Director Region South Manager Elanders AB Elanders AB Elanders Gummessons AB +46 300 50 195 +46 300 50 132 +46 515 72 32 03 +46 708 210 410 +46 703 117 055 +46 703 249 430
This information was brought to you by Waymaker http://www.waymaker.net
The following files are available for download:
http://www.waymaker.net/bitonline/2003/12/08/20031208BIT00710/wkr0001.doc
http://www.waymaker.net/bitonline/2003/12/08/20031208BIT00710/wkr0002.pdf