Buckinghamshire, United Kingdom 04 March 2015 -- Bong is set to restructure its Swedish operations. The company will stop producing envelopes at its Nybro site. In addition, rationalisation measures are to be implemented in Nybro and Kristianstad.
Envelope and packaging manufacturer Bong AB has concluded employee consultation process on the restructuring of the Nybro and Kristianstad sites in Sweden. The outcome of the consultations is that more than 70 jobs will be axed and envelope production at the Nybro site discontinued.
As anticipated, a large part of the production volume will be relocated from Nybro to Bong's production facility in Poland, a spokesman for the Swedish trade union for the forestry, wood and graphic industry GS told EUWID. The two sites in Sweden will be retained: Kristianstad will continue to produce envelopes and Nybro will concentrate on the production of paper bags and shoppers in the future.
Bong declined to comment on the restructuring measures. In the 2014 business results report, however, the company said that its restructuring programme would be concluded before the end of the second quarter 2015 and full effects of all initiatives would take place as of 2016. When fully implemented, the measures were expected to reduce Bong's fixed costs by SEK150-200m per year. "With fewer and more efficient factories we expect further reductions in our working capital in the coming years. Our goal is to return to profit on bottom line latest 2016," said Stéphane Hamelin, CEO of Bong.