Adapteo Plc Regulatory Press Release 27 April at 10:00 am CEST 

Adapteo intends to concentrate its inhouse production of adaptable buildings to the Group's production facility in Anneberg, Sweden. The planned change will mean that all employees at the factory in Gråbo will be given notice of termination, and the production intends to close down during the second half of 2020.

"We have the opportunity to concentrate our production to one production facility in Anneberg, where we have a modern facility and where we have increased our efficiency through operational excellence activities. It is also in Anneberg our technical department, and several other key functions are present. By concentrating our production, we achieve several synergies that will lead to higher efficiency and increased capacity utilisation, as well as reduced maintenance and investment needs", says Philip Isell Lind af Hageby, President and CEO of Adapteo Group.

The planned change means that all personnel at the production facility in Gråbo, around 45 employees, will be affected and the production aims to be discontinued during the second half of 2020. Negotiations with trade unions and employee representatives will begin immediately. 

Adapteo manufactures about 20 per cent of the annual volumes of adaptable buildings within the Business Area Rental Space inhouse, while external partners in Northern Europe produce about 80 per cent of the volumes.

The total cost of the close down is estimated not to exceed EUR 1.0 million, reported as items affecting comparability, of which almost half will affect cash flow.