Rettig ICC considers discontinuing production of electric radiators in Järpås in Sweden
Due to the prevailing market situation and LVI’s declining sales, Rettig ICC has conducted an analysis of possible cost savings for the company in order to secure LVI’s long-term position in the market. The analysis resulted in an intention to discontinue production of electric radiators in Järpås in Sweden and move the warehouse to Järpås. This will affect 43 of LVI’s 55 current employees in Järpås.
The market for electric radiators has changed dramatically in recent years. Sales have fallen off due to both energy policy and economics, resulting in consumers’ preference for other heating solutions such as water based heating solutions where Rettig ICC is the market leader. The forecasts show that the electric radiator demand in Sweden will continue to decline in coming years.
The market situation has resulted in, LVI cannot cost-effectively manufacture electric radiators and, to meet the tough market, the direct costs must be sizably reduced.
The plan is to introduce a new, equivalent type of electric radiator – manufactured at the group’s facility in Great Britain, where radiators are produced in greater volumes – to the Swedish market. Total savings to be realised by manufacturing in Great Britain are estimated at around SEK 17 million per year.
The company will initiate discussions with the local unions and begin negotiations on the proposed measures.
For further information, please contact:
Josefina Tallqvist, Rettig Group, Investor Relations Manager: Tel. +358 (0)9 6188 3226, email@example.com or www.rettig.fi
About LVI and Rettig ICC
LVI is part of Rettig ICC, Europe’s leading heating solutions specialist. With 16 plants in 10 countries, Rettig ICC designs, manufactures and supplies radiators, underfloor heating, valves and controls to more than 50 countries, generating a turnover of approx. €572m. LVI was originally established as Lidköpings Värmeledningsindustri in 1922, and has since then grown into an international company with an active presence in Norway, Sweden, Finland and France, and export operations around the globe.