Atlas Copco to shutter U.K. pneumatic tool components plant
Industrial Distribution staff -- Industrial Distribution, 6/12/2008 7:40:00 AM
Swedish compressor and centrifuge manufacturer Atlas Copco said it plans to shutter its Desoutter Ltd. plant in Hemel Hempstead, England, and consolidate its operations into other factories and co-suppliers.The move, which means layoffs for about 95 workers, is aimed at strengthening “ the long-term cost competitiveness” of the business, Atlas Copco said in a statement. The plant manufactures components for Atlas Copco’s C.P. Desoutter line of pneumatic tools.
“Focusing our manufacturing operations to fewer locations will give us increased efficiency of production and administration. This is an important step to be able to operate in the market with a greater competitive edge, to the benefit of our customers,” Atlas Copco Industrial Technique president Mats Rahmström said. “We are now entering into full and detailed consultation with our employees and will take every reasonable action to assist those affected in achieving alternative employment either within or outside of the Atlas Copco Group.”
The cost of the closure, expected to be complete by the end of December, is estimated to be roughly $6 million. It comes on the heels of a move to consolidate pneumatic tool assembly from Hemel Hempstead to a new Atlas Copco plant in Hungary last year.
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