By Dominic Chopping
STOCKHOLM--Swedish truck maker Volvo AB (VOLV-B.SK) Wednesday announced its intention to change its European structure for truck manufacturing as part of the previously announced group-wide plans to boost efficiency and strengthen competitiveness.
-The plans will be implemented over the next two years and among other actions include relocating its cab trim operations from Umea to Gothenburg in Sweden, concentrating the assembly of heavy duty trucks in Gothenburg to one line, and concentrating the assembly of medium duty trucks to Blainville in France.
-One assembly line will be relocated from Ghent in Belgium to Blainville.
-The number of affected employees depends on several factors, including future manufacturing volumes and the results of the coming trade union discussions.
-A total of 900 individuals, of which 700 are in Sweden, are currently working in the areas of the manufacturing operations that will be relocated.
-Overall, the Group-wide efficiency program is estimated to incur restructuring costs of approximately SEK5 billion. The optimization of the truck manufacturing in Europe corresponds to a minor part of the financial impact of the Group-wide efficiency program.
-At 1249 GMT shares traded 1.4% lower at SEK93.15.
-Write to Dominic Chopping at firstname.lastname@example.org; Twitter: @WSJNordics
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(END) Dow Jones Newswires
October 16, 2013 09:06 ET (13:06 GMT)Copyright (c) 2013 Dow Jones & Company, Inc.
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