Swedish power products and equipment manufacturer Husqvarna plans to discontinue its production of stone diamond tools, the company announced Wednesday.
The company’s construction division will “shut down” its stone diamond tool manufacturing locations in Belgium, Greece and Portugal, as well as shutter all sales activities and service centers related to the business. The segment currently employs about 200 people, the company said.
Husqvarna officials said that the move is part of a broader strategy of “disciplined portfolio management and more focused capital allocation.” The withdrawal is expected to be completed by the end of the year.
“Going forward, a more streamlined product portfolio will enable us to prioritize investments in innovation in segments with the strongest potential to deliver margin expansion and attractive returns," Husqvarna Group CEO Glen Instone said in a statement.
Husqvarna said that the shutdown would curb its net sales by about 250 million krona — just over $27 million — on a full-year basis and be “slightly margin-accretive” to the construction division’s operating margin.
