|
Capacity adjustments for SIG Combibloc division in Europe SIG implements announced capacity adjustments for SIG Combibloc division in Europe; significant increase of efficiency As announced by SIG in November 2005, the European production capacities of the SIG Combibloc division are being adjusted to match changing market conditions in Germany. A comparison of the cost levels at the four European locations Newcastle (UK), Linnich and Wittenberg (D) and Saalfelden (A) shows that a closure of the plant in England will generate the biggest cost benefits for the European production group. The production volumes of Newcastle will be spread across the three remaining European production sites. Over and above these cuts, a range of additional measures aimed at reducing labour costs will be implemented at all three remaining plants to significantly increase the efficiency of the European production facilities. In addition to closing the UK plant at the end of October 2006, with its associated loss of 125 jobs, further cutbacks accounting for around another 125 jobs are planned in Germany and Austria. As announced earlier, this restructuring will create one-time costs of some EUR 25 million, of which EUR 9.5 million are already indicated in the 2005 financial statement. From 2007 onwards, primarily the cost cuts, but also the overall improved capacity utilisation at the European production plants and the optimisation of transportation costs will allow savings in excess of EUR 20 million annually. Download Media Release 060623 News overview >> |
