euro adhoc: VA Technologie AG / VA TECH T&D - transformer location in Scotland to be closed (E)

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Part of the restructuring plan for the adjustment of transformer production capacity
Social plan for the 225 employees affected
Critical use of capacity and results situation as the cause Following the expiry of a labour law consultation period and the detailed examination of the situation and possible future options, today’s meeting of the VA TECH Supervisory Board agreed to the closure of the VA TECH T&D Division’s Peebles Transformers Ltd. plant, which is based in Edinburgh, Scotland. The trade union representatives on the VA TECH Supervisory Board voted against this resolution.
For a considerable period of time, this plant has been confronted with significant underuse of capacity and a related, critical results situation. In addition, the generally depressed state of the European transformer market has meant that, in spite of the initiation of restructuring measures, no improvement has been achieved.
225 employees are affected by this closure and along with both them and the trades unions, the management is drawing up a social plan. Moreover, VA TECH T&D will ensure that the current order backlog will be completed in full.
VA TECH T&D is currently involved in a programme aimed at increasing revenues and restructuring. The closure of the Scottish transformer plant is part of a course of action agreed between the VA TECH Managing and Supervisory Boards for an urgently needed, drastic reduction in transformer production capacity. The planned restructuring costs will amount to EUR 65-70 m, whereby the Division will be put in a position where it can achieve a clearly positive overall result in 2005.

Further inquiry note:
Bettina Pepek
Press Officer
Tel: 0043 1 89 100 3400

Emittent: VA Technologie AG Turmstraße 44 AT-4031 Linz ISIN: AT0000937453 WKN: 093745 Indizes: ATX, ATX Prime, WBI Börsen: official dealing Wiener Börse AG; free trade Berliner

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Wertpapierbörse, Bayerische Börse
Branche: Technology
Sprache: Englisch