Swedish Match today announced its
intent to concentrate its Belgian cigar manufacturing operations
to its production facility in Houthalen, Belgium, and Pandaan,
Indonesia. This restructuring will result in a reduction of the
Belgian manufacturing workforce by approximately 160 employees.
The integration of the two Belgian
operations in Houthalen and Overpelt, and concurrent
manufacturing investments are part of an ongoing effort to
modernise and improve efficiencies in the company’s
manufacturing units.
The cigar business of Swedish
Match Cigars NV is a wholly owned entity of Swedish Match AB, a
company headquartered in Stockholm, Sweden. Swedish Match is one
of the world’s largest manufacturers of cigars, with
significant market positions in Europe and North America. Swedish
Match Cigars NV currently has its primary manufacturing units in
Houthalen and Overpelt, in Belgium and in Pandaan, in Indonesia.
In addition, Swedish Match has a distribution center in
Valkenswaard in the Netherlands and a number of establishments in
North and Central America. The Belgian operations currently
employ approximately 550 employees.
Also, General Cigar Holdings, Inc.
has announced the closure of its management offices in
Connecticut, relocating these activities to the company’s
New York and New Jersey facilities. Swedish Match owns 64 percent
of the shares of General Cigar.
The estimated cost of these
restructuring programs amounts to 80 MSEK and will be booked in
the third quarter, 2001. Annual savings of approximately 50 MSEK
per year are expected, beginning in the second half of 2002, with
full impact from January, 2003.
Swedish Match is an international
group with its head office in Stockholm. The company manufactures
a broad range of products within the OTP (Other Tobacco Products)
category, with smokeless tobacco as its core business along with
cigars and pipe tobacco, as well as matches and lighters. The
products are sold in approximately 140 countries. Sales for the
twelve months ending June 30, 2001 amounted to 12,832 MSEK.
Swedish Match is listed on OM Stockholmsbörsen (SWMA) and on
NASDAQ (SWMAY).
For further information,
please contact:
Lennart Sundén, President and Chief Executive Officer
office +46 8 658 01 75
Sven Hindrikes, Executive Vice
President and
Chief Financial Officer
office +46 8 658 02 82
mobile +46 70 567 41 76
Bo Aulin, Senior Vice President,
Secretary
and General Counsel
office +46 8 658 03 64
mobile +46 70 558 03 64
Emmett Harrison, Vice President,
Investor Relations
office +46 8 658 01 73
mobile +46 70 938 01 73