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Nordkalk’s codetermination negotiations on Gotland in Sweden completed

Nordkalk’s Swedish subsidiary Nordkalk AB has today completed co-determination negotiations at its Storugns processing plant on Gotland. In total 53.5 employees will be affected by redundancies. Some temporary employments and contracts with some contractors will also be affected.

“Today’s decision is obviously very hard for our employees. It is very unfortunate that we have been forced to take this measure, but continue to hope that a permit to continue quarrying in Klinthagen will be granted as soon as possible to avoid long-term consequences of today’s decision,” says Mikael Lindberg, Site Manager at Storugns.

A staff meeting has today been held with employees at the Storugns unit to inform about the decision. The redundancies will be carried out in phases between January and September 2015 affecting 14.5 positions in January, 17 in April and the remaining 22 in September. After September 2015, 18.5 positions will remain at Nordkalk’s Storugns unit. Other units of Nordkalk are currently not affected by the downsizing. The company has started co-operation with the local employment office and private employment services to support affected employees to find new employment opportunities.

The decision to downsize the operations in Storugns is a direct consequence of uncertainty relating to the timetable and outcome of the on-going permit processes. Klinthagen’s current quarry permit ends on 31 December 2014. Without an extended permit quarrying cannot continue. Since 2008, Nordkalk has been adapting production in its Klinthagen quarry in order to prolong its life span and to maintain production and employment. An application for a renewed permit and an expansion has been filed with the Land and Environment Court in April 2014. The court proceeding are expected to take place between 12 and 14 November 2014. The court decision is expected during week beginning 15 December 2014.

In 2006, Nordkalk applied for a permit for a new quarry in Bunge on Northern Gotland to ensure long-term access to the raw material and operations on Gotland. The legal process has been long and unpredictable. The hearing in Land and Environment Court of Appeal is estimated to take place during the first quarter of 2015.

Before a court ruling and an assessment of its implications, it is very difficult to determine future operations of the Klinthagen quarry. Nordkalk therefore has to adapt the operations at its Storugns processing plant based on the assumption that an extended permit for the Klinthagen quarry will not be available by the end of 2014. Once the court rulings are available, Nordkalk will analyse the rulings to decide on future employment opportunities within the company.

Nordkalk has been building up new stock in Storugns which enables the company to secure customer deliveries. Together with old stocks, certain customer deliveries from Gotland can continue several years.

Further information:
Mikael Lindberg, Site Manager, Storugns: +46 (0)10 476 2614, mikael.lindberg@nordkalk.com       
Eva Feldt, Communications Manager, Nordkalk AB: +46 (0)10 476 2664, eva.feldt@nordkalk.com

Nordkalk the leading producer of high-quality limestone-based products in Northern Europe. The products are used e.g. in environmental care, in the paper, steel and building materials industries as well as in agriculture. Nordkalk has operations in 9 countries and employs some 1,050 people, of which 170 in Sweden. Nordkalk invests in the co-existence of industrial operations and environmental care, and our operations have been certified according to the ISO 14001 environmental standard. Nordkalk is a member of the Rettig Group. Further information: www.nordkalk.com

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