Nov 12 2008
Uponor intends to move its Swedish metal fittings production from the Kungsör plant, near Västerås, to the company's existing plant in Hassfurt, Germany, to centralise production into one dedicated factory. The Kungsör plant will be phased out gradually and will be shut down in the spring of 2009. The closure will affect the jobs of 75 persons in total. Union negotiations will be initiated immediately.
Concentrating metal fittings manufacture on the Hassfurt site, 180 km east of Frankfurt, will bring Uponor savings in production and logistics while simplifying the total supply chain process. Since the majority of the company's metal component customers are located in Central and Southern Europe, Uponor has chosen to focus on the German plant, which can accommodate additional volumes without major modifications.
Uponor announced a company-wide cost reduction programme in August, which aims at adjusting the company's expense levels to weakening demand in customer markets. Uponor estimated then that the programme would result in the loss of more than 200 jobs. Prior to the Kungsör factory, Uponor has closed one manufacturing facility in Canada with a staff of 80 persons.
Since the announcement of the cost reduction programme, market developments have taken a turn for the worse. Uponor has now initiated consultations with its staff in Spain with the aim of cutting personnel from various functions. Earlier in the autumn, Uponor began codetermination consultations with staff in Finland and Sweden, with the purpose of reducing its workforce by a maximum of 70 persons.