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Kongsberg Automotive plans Swedish unit closure |
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OSLO (Reuters) -- Norwegian auto parts group Kongsberg Automotive will begin talks with trade unions to close its Aamotfors plant in Sweden and shift the production to Poland, the company said today.The plant has 90 employees and the risk of closure was announced in June, Kongsberg Automotive said in a statement.Kongsberg Automotive said the planned shutdown stemmed from the "significant cost gap between high-cost and low-cost countries"."We are one of the world's leading suppliers of seat heating systems for cars," CEO Olav Volldal said in the statement. "To maintain this position we must adapt our production costs to a level which yields acceptable earnings also in future."Kongsberg Automotive has about 2,800 employees and annual sales of around 3 billion Norwegian crowns ($552 million).
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