GORENJE, d.d., Velenje
Gorenje Group further pursues manufacturing site optimization
Pursuant to relevant legislation, the company Gorenje, d.d., Velenje, Slovenia, hereby informs the shareholders and the public of the following:
Velenje, March 28th 2012 – Consistently with the strategic plan for the period 2012-2015, Gorenje Group remains dedicated to optimization of its manufacturing sites in order to boost competitiveness in the home appliance industry and profitability of operations.
Optimization of manufacturing sites and the production process, along with the resulting improvement in cost efficiency, is an ongoing process at Gorenje Group. It is indeed a key element of stepping up Gorenje's competitiveness in the industry that has seen excess capacity and increasingly aggressive competition from both manufacturers from low-cost countries, and major players who have outsourced parts of their manufacturing operations to low-cost countries. With every competitor determined to win market shares, downward pressure on retail prices is mounting.
Gorenje Group will intensively carry out the activities to optimize all of its manufacturing locations throughout the period of implementation of the new strategic plan, i.e. 2012 until the end of 2015. The package of activities also includes the shift of the entire production of cookers from the Finnish plant to the Czech plant by September this year, and the shut-down of the Finnish factory, as announced on March 5th this year.
Currently, Gorenje Group is examining various solutions to optimize the production of washing machines, dryers, and dishwashers in Sweden and in Slovenia, refrigeration appliances in Slovenia and Serbia, and the possibility of introducing some new programs at various sites. Pursuant to the Workers Participation in Management Act and Gorenje's good practice of co-management, the Management Board presented today the various options for optimization to the Works Council (Council of Employees) as well. Gorenje Management Board and Supervisory Board have not yet reached any final decision regarding the said possibilities; hence, disclosure of any details of any particular option would be premature at this point. When final decisions regarding particular manufacturing sites are made and adopted, Gorenje shall inform the interested public in a timely manner and in compliance with the rules of communication relevant for public limited companies, and the corporate policy of proactive communication.
Disclaimer: The English text for all announcements is for information purposes only!
The information in this announcement will be available on the official web site of the company Gorenje, d.d., Velenje, Slovenia, www.gorenje.com, for at least 5 years from the date of this announcement.
Management Board of Gorenje, d.d.