Home / Knowledge / News / Textiles / Ahlstrom initiates cost-saving right sizing program
Ahlstrom initiates cost-saving right sizing program
07
Aug '13
Ahlstrom, a global high performance fiber-based materials company, will initiate a rightsizing program aiming to reach annual cost savings of EUR 35 million by the end of 2014.

The target includes the earlier announced EUR 15 million rightsizing measures, of which approximately EUR 10 million will be derived from the transfer of certain sales, finance and information services related personnel and cost to Munksjö by the end of May 2014. During the transition period, Munksjö will pay for the services provided.

"Ahlstrom has in the past three years executed a significant transformation of the company, as our business portfolio has been reshaped through major transactions, including the divestment of our wipes business, Home and Personal, and the combination of our specialty papers business, Label and Processing, with Munksjö. At the same time, we have been reshaping our business processes through key development programs," said Jan Lång, President & CEO.

"Many of our key development programs are nearing completion, which will allow us to scale back our spending levels and make our cost base reflect the new size and scope of our business. As a result of the refocusing of the business, our net sales have been reduced by EUR 800 million to EUR 1.1 billion in the past two years.

"This new cost saving program is fundamental in achieving the required improvement in our financial performance.  Unfortunately bringing the organization to a level which can sustain our current business is not possible without personnel reductions," stated Lång.

According to the plans, the key actions to achieve the targeted cost base reduction include in particular:

- Completion of demerger related transfers  

- Consolidation of and efficiency improvements in functional activities to reduce selling, general and administration (SGA) costs 

- Optimization and productivity improvements in the supply chain

As a result of the planned program, Ahlstrom's personnel are estimated to be reduced by approximately 350 people globally. The employee consultation processes will start in accordance with local legislation.

The company plans to book a one-time cost of approximately EUR 15 million during the years 2013-2014. The majority of the planned savings are estimated to take place by the end of 2014.

A separate project management team has been established to align the implementation of the program and to support a sustainable cost reduction that will not compromise the crucial activities in the company. 

The plans are subject to the outcome of the employee consultation negotiations where required.

About Ahlstrom

Ahlstrom is a high performance fiber-based materials company, partnering with leading businesses around the world to help them stay ahead. Our products are used in a large variety of everyday applications, such as filters, medical gowns and drapes, diagnostics, wallcoverings, flooring and food packaging.

Ahlstrom


Must ReadView All

Apparel/Garments | On 25th Jun 2017

Half of 7,000 new apparel online each day target women

Adobe has released its first Digital Price Index for apparels,...

Textiles | On 25th Jun 2017

First Insight, Chico's FAS enter partnership

First Insight, a technology company transforming how retailers make...

Apparel/Garments | On 25th Jun 2017

Expand changing use of social and web resources

With over 400 million impressions to date and web traffic of over two ...

Interviews View All

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Arvind Saraf
Triveni Sarees

e-Commerce is still evolving fast with constant flux and surprises

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
June 2017

June 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search