FinnvedenBulten divests its Swedish aluminium business, increased focus on magnesium
PRESS RELEASE, GOTHENBURG 5 FEBRUARY 2014 | FinnvedenBulten has, as part of the ongoing restructuring of the foundry business in the Finnveden Metal Structures division, signed an agreement to sell the division’s Swedish aluminium business in Finnveden Gjutal AB. The buyer is International Aluminium Casting Sweden AB, which operates with aluminium die-casting in Sweden and Estonia.
“Our strategy within Finnveden Metal Structures is to offer a unique combination of sheet metal stamping and magnesium die-casting to meet the need for weight reduction in the automotive industry. The sale of the aluminium business is an important part of the ongoing restructuring program and streamlining of the die-casting operation where all magnesium die casting is concentrated to one focused foundry located in Poland. At the same time we are pleased that the aluminium operation can continue with new owners having aluminium die casting as their main business,” says Johan Westman, President and CEO of FinnvedenBulten.
The divested aluminium business and additional restructuring costs are expected to lead to a positive net contribution to the operating profit amounting to around SEK 10 million during Q1 2014. The transaction is expected to be completed in March 2014 provided that certain conditions are met.
The effects from the total program are expected to generate approximately SEK 30 million in improved earnings compared with the outcome in 2012. The full effect is expected to be seen from the second half of 2014 after the transferred magnesium business has been tuned in into the Polish foundry.
For further information, please contact:
Johan Westman, President and CEO, FinnvedenBulten
Tel: +46 (0)31-734 59 00, e-mail:email@example.com
NB: The information in this announcement is required to be disclosed by FinnvedenBulten AB (publ) under the Swedish Securities Markets Act and/or the Financial Instruments Trading Act. The information was submitted for publication at 16:30 CET on February 5, 2014.
FinnvedenBulten develops and manages industrial businesses, offering products, technical solutions and systems in metallic materials. The Group operates as a business partner to international customers in the engineering industry, primarily the automotive industry. FinnvedenBulten is structured into two divisions – Bulten and Finnveden Metal Structures – both with strong positions in their respective customer segments. FinnvedenBulten is listed on NASDAQ OMX Stockholm. Further information at www.finnvedenbulten.com.