DGAP-Adhoc: Bauwerk Boen Group realigns production capacities
Bauwerk Parkett AG / Key word(s): Strategic Company Decision
12.06.2013 15:32
Release of an ad hoc announcement pursuant to Art. 53 KR
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Press release
Bauwerk Boen Group realigns production capacities
The newly formed Bauwerk Boen Group is responding to price pressure in the
fiercely competitive market for standard parquet floors and is realigning
its production capacities. As of spring 2014, the production of the
standard two-layer parquet will mainly be carried out at the expandable,
high-tech Kietaviskes-based plant belonging to the Group in Lithuania;
production will cease at the Salzburg location in Austria. By significantly
reducing manufacturing costs, the Bauwerk Boen Group will be able to
compete on the market on a sustainable basis.
St. Margrethen, Switzerland, 12 June 2013 - The European competition
authorities have approved the merger between Bauwerk Parkett AG from
Switzerland and Boen AS from Norway, which was announced at the end of
March. The transaction has now been completed with the founding of the
Bauwerk Boen Group. The newly formed group is now able to harness synergies
in the product range and in the area of procurement. The merger also allows
the group to respond to the challenging market conditions and realign
production capacities.
Reaction to challenging market conditions
As a result of overcapacities and cheap imports, the parquet market has
been subjected to intense price pressure for many years now. Bauwerk
Parkett responded to this development several years ago by outsourcing the
manufacture of its products that have the least added value (glued parquet
and Prepark). At the same time, a great deal of money was invested into
strengthening the company's market position in the high-quality
specialities sector. As a result, the Bauwerk Boen Group now enjoys an
excellent positioning in the higher-margin premium market and there is
potential for growth. The price pressure in the standard parquet sector,
however, continues to increase, as an ever-expanding number of companies
from countries with low wages manufacture this product.
Reorganisation of the European production facilities improves cost
structures
During the course of the continuous expansion of the state-of-the-art plant
in Kietaviskes, the Bauwerk Boen Group will integrate the production of the
standard two-layer parquet, which was manufactured up until now in
Salzburg, into the operations of the Lithuanian plant by spring 2014. This
means that the production location in Austria will be closed down. The
St. Margrethen production location, which mainly manufactures high-quality
country home planking and parquet specialities, is not affected by this
move. Thanks to the new significantly lower manufacturing costs, the
Bauwerk Boen Group will be able to compete on the market on a sustainable
basis.
Concentrating on sales and distribution in Austria
The planned realignment will result in a gradual reduction in the number of
jobs at the Salzburg location. There are currently 154 people employed at
this site, and this figure will be reduced to around 40 by spring 2014.
After the relocation of production, the Salzburg location will in future be
solely focused on the marketing and sales of Bauwerk products in the key
market of Austria. The aim of this is to guarantee the security of 40 jobs
in Austria for as long as possible.
Socially responsible downsizing in Salzburg
All of the employees affected in Salzburg have now been informed in detail
as regards the schedule of the relocation process and their planned
departure date. In parallel to this, the Executive Board has contacted
social partners and the local authorities in order to organise the
relocation process and the associated downsizing in staff in a circumspect
and socially responsible manner.
For further information please contact:
Bauwerk Boen Group
Klaus Brammertz, CEO
+41 71 747 72 79 or mobile: +41 79 660 45 26
klaus.brammertz@bauwerk.com
12.06.2013 News transmitted by EQS Group AG.
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Language: English
Company: Bauwerk Parkett AG
Neudorfstrasse 49
9430 St. Margrethen
Switzerland
Phone: +41 71 7477474
Fax: +41 71 7477423
E-mail: info@bauwerk.com
Internet: www.bauwerk.com
ISIN: CH0207961084
Swiss Security Number:
Listed: SIX
End of Announcement EquityStory News-Service
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