#Sweden #Lindab #Ventilation Systems #Profile Systems #Grevie

Lindab's Structural Measures and Cost Reductions

Introduction

In a strategic move aimed at enhancing profitability during a challenging market landscape, Lindab has announced structural adjustments primarily focusing on its ventilation business. These changes involve substantial workforce reductions as well as the closure of operational sites.

Background

As detailed in Lindab's latest interim report, the ventilation sector has faced declining demand, leading the company to reassess its operational costs. The management, led by President and CEO Ola Ringdahl, is committed to maintaining market strength while making necessary adjustments to sustain profitability.

Key Actions

The company plans to reduce its workforce by 180 full-time positions, with around two-thirds of these roles belonging to white-collar workers. The expected annual savings from these cuts is approximately 120 million SEK, primarily within the Ventilation Systems division. Additionally, Lindab will implement the closure of 10 sites related to warehousing and local production, further streamlining operations.

Breakdown of Cost Reductions

1. Workforce Reductions: To align costs with current business needs, Lindab's personnel restructuring will involve:
- 160 positions eliminated in the Ventilation Systems business area.
- Additional cuts in the Profile Systems area, totaling 20 positions across the company.
- The company anticipates these reductions will incur one-time costs of 45 million SEK, to be reflected in Q4 2024.

2. Site Closures: The company is closing 10 operational sites as part of its structural measures. The key points include:
- Strategic restructuring will see customers serviced from alternative locations.
- Expected one-time costs associated with these closures are estimated at 25 million SEK.

3. Future Projections: The changes are projected to yield significant savings, with an expected effect of 90 million SEK beginning January 2025, achieving full benefits by July of the same year.

Strategic Focus

Ola Ringdahl emphasized that while these measures may alter employment landscapes, they are critical to LIndab's growth and profitability. The changes are designed to minimize customer impact and maintain the strong market position the brand has established. At the same time, Lindab remains focused on continuing investments in innovative products, business acquisitions, and advancements in digitalization to stay competitive in the sector.

Conclusion

Lindab's initiatives to implement structural measures and reduce costs respond to the current market demands, aligning operational focus with profitability objectives. This strategic direction will not only help buffer against fluctuations in demand but also position Lindab for future growth and resilience in the ventilation market. The commitment to innovation and customer service remains unwavering as the company navigates through these changes.

For more information, please refer to the official Lindab communications or the latest financial statements available through their website.