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Cloetta gives notice to 17 factory workers in Ljungsbro

Cloetta has today given notice of termination to 17 employees at its factory in Ljungsbro. The job cuts refer to employees in production and are a response to Fazer’s decision to transfer production of certain products that are currently manufactured in Ljungsbro to Finland and the effects of completed equipment investments.

Following negotiations we have agreed on a need to downsize the staff by 17 jobs compared to the 28 jobs that were announced earlier in September. The results of the negotiations provide scope and opportunity for ongoing skills development in production. In order to invest further in this development, we will also appoint two new employees to work with training and competence management.

“A major focus on skills development that has among other things resulted in greater flexibility, coupled with a strong belief in continued positive sales growth for the rest of Cloetta’s product range, has led to a lower need for workforce reductions than was estimated at the time of original announcement,” says Cloetta’s Managing Director and CEO Curt Petri.

“At the same time that we naturally regret having to take action of this type, we are launching targeted career readjustment measures together with Arbetslivsresurs in Linköping. We will start information and different types of individual efforts already tomorrow,” concludes Curt Petri.

The information in this press release is subject to the disclosure requirements of Cloetta AB (publ) pursuant to the Swedish Securities Market Act. The information was submitted for publication on 14 September 2010, 14.50 p.m. CET.

For additional information contact
Curt Petri, Managing Director and CEO, mobile +46 70-593 2169,
Factory Manager Karin Svärdh, mobile +46-527 47 27 or
Christina Björck, Human Resources and Communications Director, mobile, +46 70-544 88 78.