Fagerhult initiate negotiations with trade unions with the intent of closing production units in Borås and Falkenberg

Fagerhult initiate negotiations with trade unions with the intent of closing
production units in Borås and Falkenberg 

The lighting group Fagerhult today initiated co-determination negotiations with
trade union representatives in Borås and Falkenberg with the intent of closing
down the production units in the two cities. Following the completion of the
negotiations, a boardroom decision on a closure of the units is anticipated late
September.

The Borås unit currently has a staff of 54, of which 17 are white collar
workers. The number of staff at the Falkenberg unit is 61, of which 16 are white
collar workers. 

We will seek to close the two plants due to over-capacity, which in turn is an
effect of the current recession that has resulted in a shrinking number of
orders.
 
In addition, Fagerhult has made considerable investments in new production
technology. This allows us to increase productivity at the Habo and Åhus
production units, which will be taking over most of the manufacturing from the
Borås and Falkenberg units. A small part of the production will be moved to the
Group's unit in Suzhou, China.
 
Expressing his concern, Fagerhult's CEO Johan Hjertonsson said:
“Decreasing demand due to the current recession forces us to take action. We
need to be efficient at all times, and that unfortunately implies having to
close down plants.

I understand our employees' concern; but we feel it's important to be
transparent about the co-determination negotiations to avoid rumours and
speculation.
 
We will of course be taking all measures possible to support those who are
affected by the closures. We will be working closely with the trade union
representatives and local officials in both Borås and Falkenberg.”

Shutting down the plants in Borås and Falkenberg would take approximately 6
months following completed co-determination negotiations and would lower the
Group's costs by approximately SEK 40 million annualy. The closing-down cost
would amount to SEK 30 million and would affect third quarter earnings 2009. 


Habo 24 August 2009 



Press conferences will be held today 24 August at 14.00 in  Borås at Elenco
Lighting AB, Almenäsvägen 18 and in Falkenberg at Hotel Strandbaden,
Havsbadsallén.

Disclosures may be submitted by

Johan Hjertonsson 			
CEO 
tel: +46 36 10 87 06 
mobile: ++46 70 229 77 93 
e-mail: johan.hjertonsson@fagerhult.se

Ulf Karlsson 
CFO
tel: +46 36 10 85 63 
mobile: +46 70 537 04 54 
e-mail: ulf.karlsson@fagerhult.se

The Fagerhult Group with 2,000 employees is the largest lighting group in the
Nordic region and a leading force in Europe. We develop, manufacture and market
professional lighting systems for public environments. The group has sales
companies in Sweden, Norway, Denmark, Finland, United Kingdom, Ireland, the
Netherlands, Belgium, France, Spain, Germany, Austria, Estonia, Poland, Russia,
Dubai, Australia and China. Production facilities are located in Habo,
Falkenberg, Borås and Åhus in Sweden, Manchester in England, Melbourne in
Australia and in Suzhou, China. The group, which includes Fagerhults Belysning,
Ateljé Lyktan,Fagerhult Retail, Elenco, Eagle Lighting, Project Lighting and
Whitecroft Lighting, has a turnover of SEK 2,800 million. AB Fagerhult is quoted
on the OMX Nordic Exchange in Stockholm, Mid Cap.