Production closure at Gusab Stainless

Sandvik Steel has decided to initiate negotiations with the trade unions
regarding the closure of production of stainless spring wire at its
subsidiary, Gusab Stainless AB in Mjölby, Sweden, with approximately 110
employees. The closure is expected to be completed during 2003 and is
part of the previously announced program of change intended to increase
efficiency and adapt production capacity within business area Sandvik
Specialty Steels.
The background to the closure is the unsatisfactory profitability of the
company’s Wire division, which is, in part, due to total production
capacity being too high. A review of operations has shown that the
current five production units must be reduced to four to raise
efficiency, reduce costs and increase profitability.
The Gusab brand will remain in the product range and production will be
transferred to other wire manufacture units within Sandvik Steel. Given
the current situation, about 20 of the employees at Gusab Stainless will
be offered employment at these units. Other personnel will be offered
support programs to be developed in cooperation with the trade unions.

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