Ahlstrom Corporation

Ahlstrom`s restructuring measures in Q4/2007 to improve profitability


Source: Ahlstrom Corporation

Ahlstrom has during the fourth quarter 2007 taken additional restructuring actions in various parts of the organization reducing altogether 250 positions. Combined with the previously announced restructuring measures, a total of four sites and nine manufacturing lines will be closed and consequently 650 positions will be lost. The total non-recurring costs, approximately EUR 45 million, are booked in the fourth quarter result of 2007.
The main focus area of the restructuring measures is the European operations of the Specialty Papers segment including the closure of three non-competitive manufacturing lines during the first half of 2008, affecting 450 positions, i.e. the earlier announced plans to close the Ascoli and Chantraine plants and the Turin PM4 release base paper line. In the FiberComposites segment six manufacturing lines are closed and 200 positions reduced.  The non-recurring restructuring costs amount to approximately EUR 45 million of which asset write-offs are EUR 9 million. The restructuring has a positive cash flow due to the release of working capital, and it is targeted to bring profit improvement of EUR 25 million on an annual basis.
'The systematic restructuring actions taken enable Ahlstrom to start the year 2008 with a more competitive cost structure and a leaner organization. The recent acquisitions and the ongoing investment projects in Brazil, Russia, India and China (BRIC countries) will make Ahlstrom well-positioned to succeed and grow in 2008 and beyond', comments President & CEO Jukka Moisio.

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