Following strategic review: Bulten consolidates manufacturing and makes changes to U.S. operations
Bulten confirms that, as an outcome of the strategic review previously communicated, the Group has decided to consolidate the manufacturing volumes currently produced at its site in Streetsboro, Ohio, into its European manufacturing operations. As a result of this decision, production at the Streetsboro facility will be discontinued.
The decision is based on Bulten’s overall assessment of how its operations are best organised to meet customer needs. Production in Streetsboro has primarily supported customer relationships that are part of Bulten’s broader European customer base. Given the current product and volume mix, the Group believes these customer requirements can be met more effectively through its European manufacturing structure, where capacity, capabilities and scale are better aligned.
Bulten continues to view the U.S. as an important and attractive market. Going forward, the Group will focus its U.S. operations on a pure distribution model, with an emphasis on customer relationships, sourcing, logistics and value-added services. This focus enables Bulten to support a broader range of customer needs and applications.
The change to the operating model also strengthens Bulten’s ability to address increasing activity in advanced robotic applications and other industrial applications, where demand is developing positively and where a distribution-based setup provides greater flexibility in meeting customer requirements. Where applicable, the Group will continue to utilise its own manufacturing expertise as part of the sourcing base.
“The U.S. remains an important market for Bulten, and this change is about aligning our operating model with how we can best support our customers going forward. By consolidating manufacturing where it best fits our current product mix, while at the same time strengthening our customer-focused distribution activities in the U.S., we are creating a more flexible and efficient structure that supports long-term value creation”, says Axel Berntsson, President and CEO.
The change to the operating model is expected to result in a more capital-efficient structure that supports operational efficiency and is expected to have a non-material positive effect on earnings over time. Based on current assumptions, the improvement at a steady-state run rate is estimated to be in the range of SEK 10–20 million on an annual basis. The decision is effective immediately.
The initiative is one of the concrete outcomes of the strategic review and reflects Bulten’s increased focus on selected customer relationships, value-added offerings and a clearer alignment of the Group’s industrial and commercial structure with customer needs. Taken together, this strengthens Bulten’s long-term positioning in key markets and selected growth segments.
Bulten will continue to communicate material developments in accordance with applicable disclosure requirements.
