Midsona AB (publ) announces a restructuring program to accelerate margin improvement
Midsona announces a restructuring program aimed at streamlining the business and reducing overhead costs to accelerate margin improvement and strengthen the Group’s competitiveness.
The program is expected to achieve run rate cost reduction of ca. SEK 20 million per year, once fully implemented, with implementation costs of ca. SEK 15 million to realize the savings. This program excludes the ongoing cost adaptations in the Spanish business reflecting the lower available production capacity following the fire in the plant in Castellcir.
Henrik Hjalmarsson, President & CEO comments: "Whilst I am pleased to see the strategy implementation moving in the right direction, our ambitions are considerably higher than our present performance, and we need to accelerate our efforts towards our margin target. This restructuring program is part of an overall efficiency review, which also includes a full evaluation of our production and logistics structure to look for opportunities to further improve our efficiency. Of course it is always tough to have colleagues leave the Group, but this is an important part of the journey towards our ambitions and will enable a more efficient and effective organization".
The proposed restructuring is conditional upon consultations and negotiations with relevant employee representatives prior to any final decision. The ambition is to finalize the required union negotiations and implement the changes, so they achieve full run rate impact by the first quarter 2026.