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Husqvarna implements changes, some workers will have to go

Staff writer ▼ | October 7, 2015
Husqvarna Group will implement changes in the manufacturing and logistics structures in Sweden, the U.S and China.
Restructuring   The consolidation in Husqvarna Group
The cost reductions will be utilized for investments in profitable growth activities and to mitigate unfavorable currency impact going forward.

The measures are estimated to entail restructuring costs of around SEK 150m, which will be provisioned for in the Group's income statement for the fourth quarter of 2015. The changes are gradually expected to lead to annual cost savings of around SEK 80m, with full effect as of 2018.

"Manufacturing and logistics operations, including related ways of working has been one of our special focus areas lately. In respect of the production facility in Huskvarna we have invested in automation technology and changes in our production processes," says Kai Wärn, president and CEO of Husqvarna Group.

The changes affect staffing requirements and it is estimated that approximately 80 employees related to production will be affected. The personnel reductions are planned for 2015 and 2016, after negotiations with the labor union.

It has also been decided to invest in, and consolidate, the logistics and warehouse structure around the production facilities in Orangeburg and McRae, U.S., which will be implemented gradually during 2016 and 2017.

The consolidation implicates accounting consequences such as adjustments of asset values and provisions for current leasing agreements.

Furthermore, as previously announced, the Group's production facility in Shanghai will be consolidated into the Group's production plant in Changzhou, China. The change will be completed during 2016.