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

US announces final CVD on fine denier PSF from China, India

Textiles | On 19th Jan 2018

US announces final CVD on fine denier PSF from China, India

The US secretary of commerce Wilbur Ross recently announced the...

EU consumers to gain from cheaper, safer, better e-payments

Apparel/Garments | On 19th Jan 2018

EU consumers to gain from cheaper, safer, better e-payments

European consumers can now reap the full benefits of paying online...

Courtesy: Epson

Textiles | On 19th Jan 2018

Epson's new SC F2100 enhances DTG printing

Epson, a leader in inkjet printers and digital textile printing...

Interviews View All

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Top executives
Textile industry

The foremost issue is bridging the skill gap

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Giorgio Mantovani
Corman S.p.A

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

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

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

January 2018

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

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


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