Lindab takes action to strengthen profitability within the Ventilation business area
Lindab is closing a small operation in Texas, USA, and is also continuing to centralise its European production of labour intensive products in Karlovarska, Czech Republic.
Lindab Ventilation will close manufacturing operations in Texas, USA, by the end of September. In future, the operations at the central facility in Portsmouth, Virginia will supply all of Lindab's US market. The Texas unit has mainly produced large, customised components. The closure affects 20 people. The annual cost savings are estimated at SEK 9 million and will take effect from the fourth quarter of 2010. The one-off cost for the closure will affect the third quarter and will amount to approximately SEK 8 million.
Lindab has entered a rental agreement for a new factory tailor made for Lindab's production. The factory is directly adjacent to Lindab's existing large production facility for Ventilation in Karlovarska, outside Prague. The rental of this new factory provides 10,000 m2 space for further centralisation and more efficient production of labour intensive ventilation products, such as indoor climate products (Comfort). The new facility is expected to be operational in the second quarter of 2011.
President and CEO David Brodetsky comments, "To improve profitability within the Ventilation business area is a focus area for Lindab, which we communicated at our Investor Day in June. By closing unprofitable operations in Texas and continuing to centralise parts of our production in Europe, we are taking two further important steps in that direction."
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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)73 274 5418
Nils-Johan Andersson, CFO
Email: nils-johan.andersson@lindab.com
Mobile:+46 (0)70 668 5075
Lindab - A Ventilation and Building Products company:
Lindab develops, manufactures, markets and distributes products and system solutions primarily in steel for simplified construction and improved indoor climate.
The business is carried out within three business areas, Ventilation, Building Components and Building Systems. The products are characterised by their high quality, ease of assembly, energy efficiency, consideration towards the environment, and are delivered with high levels of service. Altogether, this increases customer value.
The Group had net sales of SEK 7,019 m in 2009, was established in 31 countries and had approximately 4,500 employees. The main market is non-residential construction, which accounts for 80 percent of sales, while residential accounts for 20 percent of sales. During 2009, the Nordic market accounted for 42 percent, CEE/CIS (Central and Eastern Europe as well as other former Soviet states) for 21 percent, Western Europe for 32 percent and other markets for 5 percent of total sales.
The share is listed on the Nasdaq OMX Nordic Exchange, Stockholm, Large Cap, under the ticker symbol LIAB. The principal shareholders are Ratos, Sjätte AP-fonden and Skandia Liv. For more information visit www.lindabgroup.com