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Cloetta to reduce costs within Supply Chain

Cloetta is active on a highly competitive and mature market, and must therefore constantly reduce costs. In addition, there is overcapacity in the production structure. Therefore, during the summer 2012, a project to close and transfer production from three factories was initiated.

By closing the factories in Alingsås and Gävle in Sweden and Aura in Finland, annual savings of approximately SEK 100 million on EBITDA-level will be generated.

The factory in Alingsås has already ceased production and products are transferred to other factories in the Group.

Production in Aura will continue until the beginning of 2013, while production in Gävle will cease in beginning of 2014.

The closure of the factories and move of production would incur a total cost, including impairments, of SEK 320 million to SEK 370 million.

The production relocations are expected to generate annual cost savings of approximately SEK 100 million on EBITDA-level with a gradual effect in 2013 and with full effect from sometime during the second half of 2014.