KRISTIANSTAD, Sweden, Aug. 17, 2005 (PRIMEZONE) -- As part of Bong's ongoing efforts to cut costs, improve profitability and raise productivity, a new action programme was launched in the third quarter. The programme will affect a total of around 100 employees in Scandinavia, the UK, Germany and Finland. In addition to those who have already left or been given notice, negotiations have been initiated for the reduction of 31 positions in Nybro, six in Kristianstad, some 20 in the U.K., around 10 in Germany, three in Denmark and two in Finland.
The cost of the programme is estimated at approximately SEK 25 million and will be charged to the profit and loss statement as a one-time expense in the third quarter. The savings are expected to reach approximately SEK 25 million on an annual basis, and will emerge successively starting in the fourth quarter.
Bong sees potential to enhance productivity in several functions through new working methods, better coordination and increased automation. The entire workflow at the Nybro plant will be streamlined with a new factory layout, and coordination of administration and accounting is being carried out in Germany and Scandinavia. In addition, work duties in support functions such as sales assistance and repro will be divided among fewer employees in all of the Group's business units.
These measures are the result of a comprehensive analysis conducted in the Group during the spring, with a focus on the largest business units.
"The programme represents an additional step in our previously announced efforts to improve profitability in the Group. The resulting productivity gains will strengthen Bong as a company and enable us to take a more offensive approach in the market," says Anders Davidsson, Managing Director and CEO of Bong.
Employee co-determination negotiations and discussions with the affected employees will begin immediately, and the goal is to quickly find the best solution for everyone involved.
For additional information about the interim report, please contact Anders Davidsson, President and CEO of Bong Ljungdahl AB. Telephone (switchboard) +46 (0)44 20 70 00, (direct) +46 (0)44 20 70 80, (mobile) +46 (0)70 545 70 80.
Bong is one of Europe's leading envelope companies. The Group has an annual turnover of approximately SEK 1.8 billion, some 1,300 employees and an annual manufacturing capacity of around 15 billion envelopes at its factories in Sweden, Denmark, Norway, Finland, Poland, Germany, Belgium, the U.K. and Ireland. Bong has a very strong market position, particularly in Northern Europe, and conducts sales and marketing in eleven European countries through its own sales organisations. The Group sees attractive opportunities for further expansion and development. Bong is a publicly listed company and its shares are quoted on the O list of the Stockholm Stock Exchange.
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