Ovako Reducing Its Workforce By More Than 200
12/10/2012 - Ovako will reduce its workforce by some 200 positions in order to improve efficiency and reduce costs in light of the current economic situation.
Ovako will reduce its workforce by some 200 positions in order to improve efficiency and reduce costs in light of the current economic situation. Notices of redundancy were issued on 7 December 2012 to 134 employees at Hofors. Another 70 positions will be eliminated through rationalization at the group’s production sites in Sweden and Finland.
Since the autumn of 2011, Ovako has a program to streamline its operations. This program is now being intensified, and over the next six months approximately 70 positions will be eliminated through rationalization. Further initiatives to reduce other costs will also be implemented. All of Ovako’s production sites in Sweden and Finland will be affected by the program.
“Our goal is to continue to build a strong and effective organization. At the same time, we must adjust to the fact that it may be a long time before there is a recovery in the economy,” says Tom Erixon, President and CEO Ovako.
Annual cost savings from these measures will amount to approximately € 10 million.
Ovako’s investments and engagements in new markets will continue as planned.
Ovako is a European producer of engineering steel for customers in the bearing, transportation and engineering industries. Its production covers low-alloy steels and carbon steels in the form of bars, tubes, rings and pre-components. The company has production plants in 11 locations and several sales companies in Europe and the USA. Net sales in 2011 were € 1,121 million and the number of employees was 3,239. Total steel production capacity is 1.3 million tonnes per year.
