Husqvarna to relocate factories as part of restructuring

Husqvarna Construction's Jönköping facility in Sweden is to be closed and relocated to Huskvarna as part of a much wider restructuring effort that will see the group shed around 1200 employees and shift production from Sweden and the US to new facilities in countries such as Poland and China.

The restructuring will also see the Construction division reduce its workforce in Spain. The creation of new jobs in China and Poland will result in a total net reduction of 400 in the number of employees.

Magnus Yngen, Husqvarna's chief executive officer and president, said; "I regret that we have to implement measures which will affect so many employees. Husqvarna's production is too fragmented with a number of small plants, which means inefficient utilization of capital and resources...These changes are necessary in order to secure the Group's long-term competitiveness".

The announcement of the restructuring came as Husqvanrna released its third quarter sales, which were 8% down. The company's Professional Products division - which includes Construction - saw sales fall by 17% and operating profits down 15%. The company said it was the construction and forestry divisions that were worst affected by the downturn.