EMCC European Monitoring Centre on Change

Volvo Bus Corporation

Company/Organisation:
Volvo Bus Corporation

Geographic Location

Country: Sweden
Region: Värmlands län; Norra Mellansverige
Location of affected unit(s): Säffle

Company

Sector: Manufacturing
Manufacture of transport equipment
29.1 - Manufacture of motor vehicles
Number Employed: 380
Group: Volvo Group

Employment Effects

Announcement Date: 03-10-2012
Planned Job Reductions min: 330
Type of Restructuring: Offshoring/Delocalisation
Foreseen End Date: 30-06-2013
Direct Dismissals: 330

Additional Information

Volvo Bus Corporation, manufacturer of large buses and coaches, has announced that it is closing down its facility in Säffle and will concentrate its manufacturing at the Polish facility in Wroclaw. The closure will affect 330 workers as well as some 60 consultants. The company will retain its technical support department in Säffle, which amounts to some 50 positions. The planned restructuring implies that production in Säffle will be terminated at the end of June 2013.

The decision follows weak market developments and tough competition in Europe. It is reported that the expectation of focusing all production on the much larger plant in Poland is to achieve economies of scale, which are said to be necessary to tackle the increasingly tough competition. The plant in Poland has four times the capacity of the one in Säffle.

Volvo Bus Corporation is part of the Volvo Group.