euro adhoc: VA Technologie AG
VA TECH T&D - transformer location in
Scotland to be closed (E)
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
Part of the restructuring plan for the adjustment of transformer production capacity Social plan for the 225 employees affected Critical use of capacity and results situation as the cause Following the expiry of a labour law consultation period and the detailed examination of the situation and possible future options, todays meeting of the VA TECH Supervisory Board agreed to the closure of the VA TECH T&D Divisions Peebles Transformers Ltd. plant, which is based in Edinburgh, Scotland. The trade union representatives on the VA TECH Supervisory Board voted against this resolution. For a considerable period of time, this plant has been confronted with significant underuse of capacity and a related, critical results situation. In addition, the generally depressed state of the European transformer market has meant that, in spite of the initiation of restructuring measures, no improvement has been achieved. 225 employees are affected by this closure and along with both them and the trades unions, the management is drawing up a social plan. Moreover, VA TECH T&D will ensure that the current order backlog will be completed in full. VA TECH T&D is currently involved in a programme aimed at increasing revenues and restructuring. The closure of the Scottish transformer plant is part of a course of action agreed between the VA TECH Managing and Supervisory Boards for an urgently needed, drastic reduction in transformer production capacity. The planned restructuring costs will amount to EUR 65-70 m, whereby the Division will be put in a position where it can achieve a clearly positive overall result in 2005.
end of announcement euro adhoc 29.09.2004
Further inquiry note:
Bettina Pepek
Press Officer
Tel: 0043 1 89 100 3400
bettina.pepek@vatech.at
Branche: Technology
ISIN: AT0000937453
WKN: 093745
Index: ATX, ATX Prime, WBI
Börsen: Wiener Börse AG / official dealing
Berliner Wertpapierbörse / free trade
Bayerische Börse / free trade