VARNAMO, Sweden, Sept. 17, 2002 (PRIMEZONE) -- The Board of Finnveden AB has reached a decision assigning the management of the Powertrain Components business area the mission of implementing a change in production structure. The management of the business area intends to concentrate production to four facilities in Sweden and one in the U.K., while a closing of the unit in Moheda, Sweden is planned.
The changes within the Powertrain Components business area form part of the planned structural measures totaling SEK 80 M announced by Finnveden in its six-month report.
In accordance with Powertrain Components' strategy of focusing on its production structure, the manufacture of connecting rods and valve actuation components will be concentrated to Kungsor and Trollhattan in Sweden and to Alford in the U.K. The manufacture of other precision components for engines and power transmission will be concentrated to the units in Alvesta and Torpsbruk in Sweden. This will increase the degree of production specialization between the facilities.
"The Powertrain Components business area has established a strong position as a supplier to the international automotive industry. In order to be able to maintain and develop this position, Powertrain Components must be able to offer a cost-efficient production system and qualified technical resources. Through the announced measures, we are creating a more competitive structure," said Tommy Boork, President and CEO of Finnveden.
Approximately 60 employees at the units in the southern Swedish province of Smaland will thus be served redundancy notification. Approximately 30 of these will be offered continued employment in other locations. Co- determination negotiations will be initiated as soon as possible with the trade-union organizations concerned.
Finnveden AB (publ)
For further information, contact: Tommy Boork, CEO +46 70-511 21 13 Johan Lundsgard, Powertrain Components business area manager +46 70-347 19 19
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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