Consolidation of Husqvarna Construction's operationsPublished 15/9, 2017 at 10:55
Husqvarna Construction is thought to be a market leader in the preparing and polishing concrete floors following the recent acquisitions of Diamond Tool Supply, Pullman Ermator and HTC.
The company intends to implement structural changes to enhance customer support, better co-ordinate operations and to support an acceleration of investments for growth.
“We are highly committed to invest and grow in this attractive market segment and provide the best total solution for our customers. Our strategy is to accelerate growth by increasing investments, predominantly in sales, service and product development,” said Husqvarna Construction Division president Henric Andersson. “To help fund these growth initiatives and better co-ordinate our operations overall we intend to implement some structural changes to increase our capabilities and to realize synergies.”
Husqvarna Construction will continue to apply a multi-brand strategy, but to a larger extent leveraging on the existing global back-end infrastructure to increase efficiency and capabilities. The proposed changes will put 50 employees at risk, including closure of Pullman Ermator’s sites in Smedjebacken, Sweden and Tampa, Florida, US.
The total cost for the changes is estimated to be approximately SEK 65M (€6.8M). The majority of these costs will be charged against the Construction Division’s operating income in the third quarter of 2017, and the remainder in the fourth quarter, and have an estimated 18 to 24 months’ pay-back.