Atlas Copco this week announced it will reorganize the production of road construction equipment in Karlskrona, Sweden, to create a more competitive production unit with stronger future growth potential. The planned activities will require an investment of about MSEK 30 (about U.S. $4.5 million), and a reduction of the workforce.
A full analysis of the Karlskrona facility was carried out after the first flow-based production line started up in March this year. The investments to be carried out in the coming 12 months will be used to rationalize the setup for logistics and assembly at the factory site, bringing the cost level closer to that of other production units and freeing up space for future manufacturing of products.
Atlas Copco’s subsidiary Dynapac Compaction Equipment AB has notified Sweden’s public employment service about a reduction of 83 blue-collar employees. Negotiations with the local metal workers union will begin immediately.
“Given the ongoing changes and the current production volumes, it has become clear that these are difficult but necessary decisions to ensure we have a competitive facility that lives up to the full potential of its application and product knowledge,” said Nico Delvaux, president of Atlas Copco’s business area Construction Technique. “We will do all we can to support employees who are affected by these measures.”
The factory in Karlskrona, which primarily manufactures soil and asphalt rollers, currently has 493 employees. The facility will be developed as Atlas Copco’s competence center for design and production of premium rollers.
Atlas Copco manufactures compressors, expanders and air treatment systems, construction and mining equipment, power tools and assembly systems. The company’s Construction Technique business area provides construction and demolition tools, portable compressors, pumps and generators, lighting towers, and compaction and paving equipment.