Korsnäs will implement a profit enhancement program

12 Nov 2008, 1:00 PM
Korsnäs AB has today decided to implement a program to improve profitability and cash-flow. The most important parts of the program include:
  •               Production improvements
  •               Improved energy efficieny
  •               Reduced costs for raw material and other supplies
  •               Improved inventory control for raw materials as well as finished goods
  •               Review of the organisation and staffing
    The purpose of the program is to return to an operating margin above 10% when fully implemented. The program is also expected to have a positive impact on Korsnäs capital efficiency. The program includes a plan to reduce the number of staff in Gävle and Frövi of a total of 110-130 positions. Customary co-determination negotiations will be initiated imme­diately. A provision to meet the staff reductions of approximately SEK 75 million will be taken in the fourth quarter.
    "Our aim is to maintain Korsnäs' position as a leading and the most profitable producer of packaging material for consumer products. The program now launched is a prerequisite for further development of the company and for long term competitiveness", says Christer Simrén, CEO of Korsnäs AB.
    For further information, visit www.kinnevik.se or contact:
    Christer Simrén, CEO of  Korsnäs AB
    +46 26 15 10 00
    Torun Litzén, Director Investor Relations
    +46 (0)8 562 000 83
    +46 (0)70 762 00 83
    Investment AB Kinnevik (publ)'s objective is to increase shareholder value, primarily through net asset value growth. The company's operations include three comprehensive business areas; Major Listed Holdings which includes Millicom International Cellular, Tele2, Modern Times Group MTG, Metro International and Transcom WorldWide, Major Unlisted Holdings which includes the cartonboard and paper company Korsnäs, and New Ventures which is active in finding new investments in small and mid sized companies with a significant growth potential. Kinnevik plays an active role on the Boards of its holdings.
    Kinnevik is domiciled in Stockholm. The Kinnevik class A and class B shares are listed on OMX Nordic Exchange Stockholm, Large Cap segment, within the financial and real estate sector. The ticker codes are KINV A and KINV B.