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Plaster production to BarcelonaPlaster production to Barcelona8/29/2011 3:33:00 PM

Cederroth concentrates the plaster production to Barcelona

In 2009 and 2010, Cederroth implemented a number of different projects in order to streamline and consolidate companywide operations. The management team previously informed trade union parties that the company intended to further investigate the company’s plaster manufacturing operations. This investigation has now been completed and has been presented to the concerned trade-union parties.

Today, Cederroth manufactures plasters in two locations in Europe, in Falun and Barcelona. The company’s operations in Barcelona manufactures plasters only and employs a staff of 60. The factory in Falun has 200 employees, of whom around 40 work in the company’s plaster manufacturing operations.

The company has decided to invest in new modern production equipment to streamline and make the company’s plaster manufacturing operations even more competitive. In line with this, the company has conducted an investigation regarding the location of its future plaster manufacturing. The alternatives that were reviewed were either to continue as today, with manufacturing in two locations – Barcelona and Falun – or to concentrate all plaster manufacturing at one production facility.

The investigation shows that the most economically advantageous option is to consolidate all plaster manufacturing at the Barcelona facility. As a result, Cederroth’s operations in Falun will be fully streamlined into personal care and home care production and the company’s operations in Barcelona will remain fully streamlined in plaster production.

At the request of the trade-union parties, a management consultant has been engaged to review the company’s investigation. The aim of the consultant’s review was to verify input values, calculations and conclusions. The consultant’s review essentially confirms the conclusions of the company’s investigation.

Based on the results of the investigation, Cederroth management has decided to consolidate Cederroth’s plaster manufacturing operations in Barcelona. This will involve a gradual phasing out of the company’s plaster production operations in Falun at year-end 2011/early 2012.

Negotiations with the concerned trade unions are completed and the company is submitting notice to the Swedish Public Employment Service encompassing 40 people at the factory in Falun. LAS-negotiations will commence in the week beginning Monday, September 12, 2011.

For further information, please contact Cederroth’s Operation Director, Ola Carlstein, telephone: +46 8 59096420 or +46 8 59096300.