NACKA STRAND, Sweden, August 15, 2003 (PRIMEZONE) -- Boliden Nordic Brass (TSE:BLS) (Other OTC:BDNNF) has received approval from the Swedish Competition Authority. Approval from the Finnish Competition Authority has already been received. The company, founded by Boliden and Hexagon through a joint venture between Boliden Gusum AB and Nordic Brass AB, will now be able to commence operations from 1 September, 2003.
"It's positive that the process involving the competition authorities is complete, so we can now begin the fusion between the two companies. The objective is to implement the majority of changes before the end of 2003, enabling synergies to be fully achieved during 2004," said Boliden's company's CEO, Goran Ek.
The new company creates a strong Nordic player with the right characteristics to meet increasing competition from the European brass industry. The annual turnover of the new company is estimated to be 500 million SEK (approx. $60 million). Production will be concentrated at the Gusum plant. Operations in Vasteras are to be wound up and some production equipment moved to Gusum. Production costs of Boliden Nordic Brass will be at the same level as the most profitable brass companies in Europe.
A consequence of rationalising production has been a surplus in labour at both plants. In total, 160 persons are affected. Initial discussions have commenced with the relevant unions and personnel in both companies.
For more information, please contact:
Goran Ek, CEO Boliden Nordic Brass: tel + 46 21 19 88 00
Hexagon AB is a multinational engineering group with the long-term ambition of positioning itself as number one or number two within its strategic sectors. The operation is divided into four business areas: Hexagon Automation, Hexagon Engineering, Hexagon Metrology and Hexagon Polymers. The group's targets are to increase earnings per share after tax by at least 15 per cent p.a., and achieve a return on capital employed higher than 15 per cent over the business cycle. Current turnover amounts to more than 7 GSEK p.a.
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