Ahlstrom to expand its rightsizing program
(Thomson Reuters ONE) -
Ahlstrom Corporation STOCK EXCHANGE RELEASE August 7, 2013 at 8.30
Ahlstrom, a global high performance fiber-based materials company, will initiate
a rightsizing program aiming to reach annual cost savings of EUR 35 million by
the end of 2014.
The target includes the earlier announced EUR 15 million rightsizing measures,
of which approximately EUR 10 million will be derived from the transfer of
certain sales, finance and information services related personnel and cost to
Munksjö by the end of May 2014. During the transition period, Munksjö will pay
for the services provided.
"Ahlstrom has in the past three years executed a significant transformation of
the company, as our business portfolio has been reshaped through major
transactions, including the divestment of our wipes business, Home and Personal,
and the combination of our specialty papers business, Label and Processing, with
Munksjö. At the same time, we have been reshaping our business processes through
key development programs," said Jan Lång, President & CEO.
"Many of our key development programs are nearing completion, which will allow
us to scale back our spending levels and make our cost base reflect the new size
and scope of our business. As a result of the refocusing of the business, our
net sales have been reduced by EUR 800 million to EUR 1.1 billion in the past
two years. This new cost saving program is fundamental in achieving the required
improvement in our financial performance. Unfortunately bringing the
organization to a level which can sustain our current business is not possible
without personnel reductions," stated Lång.
According to the plans, the key actions to achieve the targeted cost base
reduction include in particular:
* Completion of demerger related transfers
* Consolidation of and efficiency improvements in functional activities to
reduce selling, general and administration (SGA) costs
* Optimization and productivity improvements in the supply chain
As a result of the planned program, Ahlstrom's personnel are estimated to be
reduced by approximately 350 people globally. The employee consultation
processes will start in accordance with local legislation.
The company plans to book a one-time cost of approximately EUR 15 million during
the years 2013-2014. The majority of the planned savings are estimated to take
place by the end of 2014.
A separate project management team has been established to align the
implementation of the program and to support a sustainable cost reduction that
will not compromise the crucial activities in the company.
The plans are subject to the outcome of the employee consultation negotiations
where required.
For more information, please contact:
Liisa Nyyssönen
Vice President, Communications
Tel. +358 10 888 4757
Ahlstrom in brief
Ahlstrom is a high performance fiber-based materials company, partnering with
leading businesses around the world to help them stay ahead. Our products are
used in a large variety of everyday applications, such as filters, medical gowns
and drapes, diagnostics, wallcoverings, flooring and food packaging. We have a
leading market position in the businesses in which we operate. In 2012,
Ahlstrom's net sales from the continuing operations (excluding Label and
Processing business) amounted to EUR 1 billion. Our 3,800 employees serve
customers in 28 countries on six continents. Ahlstrom's share is quoted on the
NASDAQ OMX Helsinki. More information available at www.ahlstrom.com.
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originality of the information contained therein.
Source: Ahlstrom Oyj via Thomson Reuters ONE
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