EMCC European Monitoring Centre on Change

Ovako

Company/Organisation:
Ovako

Geographic Location

Country: Sweden
Region: Örebro län; Östra Mellansverige
Location of affected unit(s): Hällefors

Company

Sector: Manufacturing
Manufacture of basic metals and fabricated metal products, except machinery and equipment
24.5 - Casting of metals
Number Employed: 500

Employment Effects

Announcement Date: 03-03-2016
Planned Job Reductions min: 40
Planned Job Reductions max: 40
Type of Restructuring: Internal restructuring

Additional Information

Swedish steel company Ovako will implement cost reductions and internal restructuring resulting in the closure of the rolling mill in Hällefors and 150 redundancies. The reason for the internal restructuring is adaptation to diminishing demand. Negotiations between Ovako and local municipal officials as well as the county agency has been held. Ovako has a total of 500 employees in Hällefors and beyond staff employed at the rolling mill Ovako has staff working with sales, marketing and IT in Hällefors. 

The ERM has previously reported on redundancies at Ovako's facilities in Forsbacka and Hofors.

Update 13/6/2016: Ovako has changed their plans and the rolling mill in Hällefors will not be closed. Instead 40 employees will be made redundant and the rolling mill will keep operating. The concern leader Marcus Hedblom states that other ways to strengthen the company's competitiveness have been identified why there is no need to close the rolling mill.