Lindab's Building Systems Division sees a 50 percent drop in sales volumes for the first six months of 2009 and announces closure of Hungarian plant
The first six months of 2009 has seen a significant deterioration in the trading conditions for Lindab's Building Systems Division, with volumes down by approximately 50 percent compared to the same period in 2008. Market conditions are expected to remain tough for the foreseeable future and in order to align capacity and reduce costs, Lindab is closing down its Building Systems production unit in Nyiregyhaza, Hungary.
The production plant will be closed by the end of July 2009. The annual saving is estimated at SEK 35 m and the full effect will be substantially achieved during the third quarter of 2009. The related one-time cost is estimated at approximately SEK 27 m. The measure includes a staffing cutback of approximately 110 employees and is a part of Lindab's ongoing review of costs.
Lindab considers that the Czech Republic Building Systems plant has adequate capacity to effectively serve the CEE markets, now and in the long term, and this will be complemented with the new Russia plant for the CIS region.
David Brodetsky, President and CEO, comments:
"Building Systems is heavily exposed towards the new build segment and the CEE markets. The volumes and performance of the division have been severely affected by the prevailing market situation. Although visibility is low, we predict that the current market situation will continue to deteriorate during the remainder of 2009. As a consequence it has been necessary to better align capacity with demand, resulting in the decision to close the Hungarian Building Systems plant. Overall, the measure to have one major Building Systems production unit within Western Europe, CEE and CIS respectively will reduce our cost base and optimise our production structure for the long term."
"Building Systems is heavily exposed towards the new build segment and the CEE markets. The volumes and performance of the division have been severely affected by the prevailing market situation. Although visibility is low, we predict that the current market situation will continue to deteriorate during the remainder of 2009. As a consequence it has been necessary to better align capacity with demand, resulting in the decision to close the Hungarian Building Systems plant. Overall, the measure to have one major Building Systems production unit within Western Europe, CEE and CIS respectively will reduce our cost base and optimise our production structure for the long term."
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The information here is that which Lindab International AB has willingly chosen to make public or that which it is obliged to make public according to the Swedish Securities Market Act and/or the Financial Instruments Trading Act.
Contacts:
LINDAB
David Brodetsky, CEO
Email: david.brodetsky@lindab.com
Mobile: +46 (0)732 745 418
Nils-Johan Andersson, CFO
Tel. +46 (0)431 850 75
Mobile: +46 (0)70 668 5075
About Lindab:
Lindab is an international group that develops, manufactures and markets sheet metal products and system solutions for the construction sector.
The two business areas, Profile and Ventilation offer complete solutions for construction systems and indoor climate, as well as individual construction and ventilation components for all types of buildings.
Lindab is listed on the Nasdaq OMX Nordic Exchange, Stockholm, Large Cap under the ticker "LIAB".
The Lindab group has approximately 5,000 employees in 31 countries and generated sales of SEK 9,840 million in 2008. Its head office is located in Grevie near Båstad in southwestern Sweden. For more information visit www.lindabgroup.com