STOCKHOLM, Sweden, Aug. 15, 2003 (PRIMEZONE) -- Boliden Nordic Brass has received approval from the Swedish Competition Authority. Approval from the Finnish Competition Authority has already been received. The company, founded by Boliden (TSE:BLS) (Other OTC:BDNNF) and Hexagon through a joint-venture between Boliden Gusum AB and Nordic Brass AB, will now be able to commence operations from September 1, 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," says the 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
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