Flügger group A/S consolidates Scandinavian production of paint in Denmark
Flügger modernizes and consolidates the Group's production plants. As part of this, the Swedish production of water-based paints will be fully relocated to Kolding from 2022, and the production of paint in Bollebygd, Sweden, will therefore be gradually closed. In total, 44 positions in Sweden are affected – corresponding to approximately 10% of our employees in Sweden. Flügger employs a total of almost 1500 employees globally.
The consolidation and modernization of the production set-up is to meet customers' growing demand for more environmentally friendly products as well as increased regulatory requirements. Flügger expects the production of paint to be 100% water-based during 2020.
“We invest 200 million DKK in our production, and upgrade our equipment and processes for them to be more future-proof compared to today, while at the same time we are consolidating our water-based production in Scandinavia. Of course, we are saddened by the consequences the decision has for the affected employees,” says Jimmi Mortensen, CEO of Flügger group A/S. The modernization of the factory in Kolding has begun, and is expected to be completed by 2021.
The above is a continuation of the planned shutdown of our Chinese production, which was discussed in the Group's Annual Report 2018/19.
New sand filler plant in Sweden
As communicated in February 2019 Flügger will broke ground for a new state-of-the-art sand filler production plant. The new plant is built in connection with the group’s existing storage facilities in Bollebygd, about 40 km east of Gothenburg. The plant is built to accommodate the increasing demand for sand filler. The plant is expected to be completed during 2021 financial year.
“The demand for filler continues to grow, and we need more production capacity, and therefore we invest app. DKK 70 million out of the total DKK 200 million in a new sand filler plant in Sweden. At the same time, we possess extensive know-how and expertise about the production of sand filler in Bollebygd, and therefore it is natural choice us to maintain the production of this in Sweden,” says Jimmi Mortensen.
The initiative does not affect the group's previously announced expectations.
Executive Board, Flügger group A/S