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SAF-HOLLAND SE
Regulatory Filings • Jan 17, 2017
6218_rns_2017-01-17_9896745d-95d0-4412-9230-ab0d384e8ee9.html
Regulatory Filings
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Corporate | 17 January 2017 18:30
SAF-HOLLAND S.A.: Restructuring of North American plant network
DGAP-News: SAF-HOLLAND S.A. / Key word(s): Strategic Company Decision
17.01.2017 / 18:30
The issuer is solely responsible for the content of this announcement.
Restructuring of North American plant network
Luxembourg, January 17, 2017 – Due to the continued market weakness in the North American truck and trailer markets, which are forecast to decline again in 2017, and in an effort to consolidate production and centralize it closer to the truck and trailer customer base, SAF-HOLLAND has made the decision to consolidate and restructure its North American plant network. This decision will align the organizational structure with the changes in the market situation and secure the long-term competitiveness of the North American plant network. This new structure will be accompanied by an adjustment in the excess production capacity at the North American locations in order to improve capacity utilization. The internal logistic processes will also be optimized to improve delivery times.
At the center of these plans is the consolidation of production by reducing the number of manufacturing plants in the U.S. from seven plants to five. As a result, production at the Muskegon (MI) and Holland (MI) locations will be transitioned to the Group locations Dumas (AR), Cincinnati (OH) and Wylie (TX). This means the production of individual product groups, which until now was dispersed over various Group locations, will each be centralized at one location. The remaining locations are closer geographically to the major truck and trailer customers so that lead time responsiveness can be improved and customer requests for locations with shorter delivery times can be met.
The testing centers and administrative offices of the Muskegon and Holland locations will be centralized at the facility in Muskegon (MI). This will enable us to build a new state-of-the-art engineering and technology center at the Muskegon location. In addition, the headquarters and corporate functions of the Americas region will be centralized in Muskegon.
The transition, which is expected to be implemented in a maximum of 18 months, will lead to one-time restructuring costs of up to an estimated US$ 10 million in 2017. These costs will consist mainly of moving costs, impairment on machines and equipment and severance payments. SAF-HOLLAND expects that the vast majority of these expenses will be recognized in the 2017 financial year. In this respect, it is important to note that the Group’s key performance indicator – adjusted EBIT – is adjusted for any restructuring costs. In addition, approximately US$ 3.0 million in additional investments are planned for the remaining locations.
The consolidation of production capacity in North America allows for far-reaching improvements through better customer proximity and thereby leaner logistics operations, centralized production processes and productivity increases. SAF-HOLLAND currently expects to reduce the direct cost base by a mid-single-digit US$ million amount annually after the completion of this restructuring.
***About SAF-HOLLAND:
**SAF-HOLLAND S.A., located in Luxembourg, is the largest independent listed supplier to the commercial vehicle market in Europe. With sales of approximately EUR 1,060 million in 2015 and more than 3,100 employees, the company is one of the world’s leading manufacturers and suppliers of chassis-related systems and components primarily for trailers, trucks, buses, and recreational vehicles. The product range comprises axle and suspension systems, fifth wheels, kingpins, and landing gear and is marketed under the brands SAF, HOLLAND, and Neway. SAF-HOLLAND sells its products to Original Equipment Manufacturers (OEMs) on six continents. The Group’s Aftermarket business sells spare parts to the service networks of Original Equipment Suppliers (OES), as well as to end customers and service centers through its extensive global parts distribution network. SAF-HOLLAND is one of the few suppliers in the truck and trailer industry that is internationally positioned in almost all markets worldwide.
SAF-HOLLAND contact for analysts and investors:
**Stephan Haas
Telefon: +49 (0)6095 301 617
E-Mail:* [email protected]
**SAF-HOLLAND contact for media and investors:
**Christina Hüttner
Telefon: +49 (0)6095 301 255
E-Mail: [email protected]
Contact:
SAF-HOLLAND GmbH
Stephan Haas
Hauptstraße 26
63856 Bessenbach
Phone +49 6095 301-617
17.01.2017 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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| Language: | English |
| Company: | SAF-HOLLAND S.A. |
| 68-70, boulevard de la Pétrusse | |
| L-2320 Luxembourg | |
| Grand Duchy of Luxembourg | |
| Phone: | +49 6095 301 – 0 |
| Fax: | +49 6095 301 – 260 |
| E-mail: | [email protected] |
| Internet: | www.safholland.com |
| ISIN: | LU0307018795, DE000A1HA979, |
| WKN: | A0MU70, A1HA97 |
| Indices: | SDAX |
| Listed: | Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange |
| End of News | DGAP News Service |