STOCKHOLM, Sweden--(Business Wire)--
Regulatory News:
The lighting group Fagerhult (STO:FAG) today initiated co-determination
negotiations with trade union representatives in Borås and Falkenberg with the
intent of closing down the production units in the two cities. Following the
completion of the negotiations, a boardroom decision on a closure of the units
is anticipated late September.
The Borås unit currently has a staff of 54, of which 17 are white collar
workers. The number of staff at the Falkenberg unit is 61, of which 16 are white
collar workers.
We will seek to close the two plants due to over-capacity, which in turn is an
effect of the current recession that has resulted in a shrinking number of
orders. In addition, Fagerhult has made considerable investments in new
production technology. This allows us to increase productivity at the Habo and
Åhus production units, which will be taking over most of the manufacturing from
the Borås and Falkenberg units. A small part of the production will be moved to
the Group`s unit in Suzhou, China. Expressing his concern, Fagerhult`s CEO Johan
Hjertonsson said: "Decreasing demand due to the current recession forces us to
take action. We need to be efficient at all times, and that unfortunately
implies having to close down plants.
I understand our employees` concern; but we feel it`s important to be
transparent about the co-determination negotiations to avoid rumours and
speculation. We will of course be taking all measures possible to support those
who are affected by the closures. We will be working closely with the trade
union representatives and local officials in both Borås and Falkenberg."
Shutting down the plants in Borås and Falkenberg would take approximately 6
months following completed co-determination negotiations and would lower the
Group`s costs by approximately SEK 40 million annualy. The closing-down cost
would amount to SEK 30 million and would affect third quarter earnings 2009.
Habo 24 August 2009
Press conferences will be held today 24 August at 14.00 in Borås at Elenco
Lighting AB, Almenäsvägen 18 and in Falkenberg at Hotel Strandbaden,
Havsbadsallén.
The Fagerhult Group with 2,000 employees is the largest lighting group in the
Nordic region and a leading force in Europe. We develop, manufacture and market
professional lighting systems for public environments. The group has sales
companies in Sweden, Norway, Denmark, Finland, United Kingdom, Ireland, the
Netherlands, Belgium, France, Spain, Germany, Austria, Estonia, Poland, Russia,
Dubai, Australia and China. Production facilities are located in Habo,
Falkenberg, Borås and Åhus in Sweden, Manchester in England, Melbourne in
Australia and in Suzhou, China. The group, which includes Fagerhults Belysning,
Ateljé Lyktan,Fagerhult Retail, Elenco, Eagle Lighting, Project Lighting and
Whitecroft Lighting, has a turnover of SEK 2,800 million. AB Fagerhult is quoted
on the OMX Nordic Exchange in Stockholm, Mid Cap.
This information was brought to you by Cision http://www.cisionwire.com
Fagerhult
Johan Hjertonsson, CEO
tel: +46 36 10 87 06
mobile: ++46 70 229 77 93
e-mail: johan.hjertonsson@fagerhult.se
or
Ulf Karlsson, CFO
tel: +46 36 10 85 63
mobile: +46 70 537 04 54
e-mail: ulf.karlsson@fagerhult.se
Copyright Business Wire 2009
