As part of the Unicon Group's strategy, the company will in future focus on production, development and sale of ready-mix concrete. As a result hereof, Unicon has therefore sold off its concrete pipe activities in Denmark.
In future, Unicon Group, a member of the FLS Group, will as part of its streamlining efforts exclusively focus on the development of its activities within ready-mix concrete.
In 2000, the Group's total turnover within precast concrete products, including paving stones and concrete pipes was DKK 0.8 bn (EUR 107m). In spring, three out of five production facilities in the U.S. were sold off, and the disposal of the Group's Spanish facilities has also been initiated. The number of employees within the area of concrete products is 880 out of a total number of 2,200 em-ployees within the entire Unicon Group.
The decision to focus on growth within the area of ready-mix concrete and aggregates has been taken in continuation of Unicon's socalled ''One Company Project'', which aims at standardising processes that apply to all the company's facilities in Scandinavia, the U.S. and Poland. The growth strategy will operate on and in connection with these markets in order to ensure that new businesses may effectively be integrated into the existing organisation. Standardisation of production processes and logistics within the area of ready-mix concrete is expected to increase profitability from the present ROCE (return on capital employed) at approximately 4 per cent in first half of 2001 based on EBIT (earnings before interest and tax) of DKK 21m.
''The decision to focus on ready-mix concrete reflects a highly deliberate intention to position the Group so that based on industrialised processes we are able to offer our customers delivery on time, high-quality products and services, and lasting business relations, says Kent Arentoft, President and CEO of Unicon.
The Disposal
With effect from today Unicon Group has sold off its concrete pipe activities in Denmark to the Danish company, Ikast Betonvarefabrik. The disposal will not affect Unicon's expectations of earnings for 2001.
FLS Industries A/S
Corporate Public Relations