John Wolz

Bowing to downward pressure on fastener prices, Sweden-based Finnveden Group will relocate its production of “work-intensive components” from Sweden to Poland. The move will eliminate 125 positions in southeastern Sweden nearly half of the company”s workforce of 260. The job cuts affect both production staff and white-collar employees.
“Finnveden Fasteners holds a strong position as a supplier to the automotive industry. However, maintaining and advancing this position in the prevailing competitive situation with downward pressure on prices requires us to continually concentrate and specialize our operations in order to become more cost-efficient,” stated CEO Tommy Boork.
Boork said outsourcing was necessary to “reduce costs and thereby remain competitive.”
The company also expects the move to help it “meet the growing local demand from local automotive production.”
Finnveden also announced plans to turn its Bufab subsidiary into an independent company with its own management and board of directors. Bufab”s current president and management reportedly will remain with the company. Bufab had operated as a business segment of Finnveden.
After the separation, Finnveden will be purely a supplier of fasteners, engine components and structural components to the automotive industry, whilst Bufab will provide fasteners for general industry.
“The separation is a natural extension of our long-term strategy work with streamlining operations. Earlier we had already transferred part of our fasteners operations to Bufab and thereby clearly differentiated fasteners for general industry as a separate business area,” commented Boork.
Bufab accounted for 22% of Finnveden”s SEK4.9 billion (US$616 million) revenue in 2004.\ �2005 FastenerNews.com