August 14, 2012
Stockholm, Sweden, August 14, 2012: Atlas Copco has decided to reorganize the production of road construction equipment in Karlskrona, Sweden, to create a more competitive production unit with stronger future growth potential. The planned activities will require an investment of about MSEK 30, and unfortunately also a reduction of the workforce.
A full analysis of the Karlskrona facility has been carried out after the first flow-based production line was started up in March this year. The investments to be carried out in the coming 12 months will be used to rationalize the setup for logistics and assembly at the factory site, bringing the cost level closer to that of other production units and freeing up space for future manufacturing of products.
Atlas Copco’s subsidiary Dynapac Compaction Equipment AB has today therefore given notice to Arbetsförmedlingen (Public Employment Service) about a reduction of 83 blue-collar employees. Negotiations with the local metal workers union will begin immediately.
“Given the ongoing changes and the current production volumes, it has become clear that these are difficult but necessary decisions to ensure we have a competitive facility that lives up to the full potential of its application and product knowledge,” said Nico Delvaux, President of Atlas Copco’s business area Construction Technique. “We will do all we can to support employees who are affected by these measures.”
The factory in Karlskrona, which primarily manufactures soil and asphalt rollers, currently has 493 employees. The facility will be developed as Atlas Copco’s competence center for design and production of premium rollers.