Alfa Laval plans to move manufacturing from Aalborg, Denmark to China.
NORDIC BUSINESS REPORT-September 2, 2014-Alfa Laval plans to move manufacturing from Aalborg, Denmark to China
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Alfa Laval (STO:ALFA.ST), a provider of heat transfer, centrifugal separation and fluid handling solution, announced on Monday that structural changes are needed in the manufacturing in Aalborg, Denmark to secure long-term competitiveness.
According to the company, this change should be seen as the final step in transferring manufacturing from Aalborg to China, a process initiated already in 1994, with the establishment of manufacturing of boilers in Qingdao, China.
This change concerns manufacturing of heaters and burners and will affect about 90 employees in Aalborg and Alfa Laval will now enter into discussions with the involved parties.
Reportedly, the Aalborg manufacturing unit has performed well and contributed to the success of Alfa Laval and former Aalborg Industries. However, shipbuilding is mainly located in China, South Korea and Japan, so from a cost and logistics perspective, it makes sense to concentrate the manufacturing of boilers, heaters and burners to an existing unit, located in the same region as the customers, Alfa Lavel said.
Also, Alfa Laval will keep its global competence centre for boiler technology in Aalborg, including the product centre, marketing, service activities, the new global test and training centre and certain manufacturing and assembly of Alfa Laval PureSOx and heaters for the European market. Upon completion close to 400 people will be employed in Alfa Laval Aalborg.
These structural changes will have a financial impact, which the company will communicate earliest by 28 October 2014, in connection with the announcement of Alfa Laval's third-quarter report.
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|Publication:||Nordic Business Report|
|Article Type:||Brief article|
|Date:||Sep 2, 2014|
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