V&S Group considers closing the production plant in Sundsvall, Sweden in 2008. The current production in Sundsvall will in that case be relocated to other V&S plants. The reason is the plant’s low capacity utilization during the past several years. V&S estimates that the closure will bring savings of SEK 35 million per year.

”It’s hard that we probably need to close the plant in Sundsvall, but we can no longer justify its low capacity utilization. Having a whole plant running at half-speed is far too expensive in the long-run. Three years ago, unlimited quotas were established for alcohol imports into Sweden. In connection with this, sales of our traditional spirits have declined. When Swedes buy alcohol outside the country they mainly choose the low-price alternatives. This does not benefit our Swedish spirits, which are of high-quality, but also more expensive,” says Rolf Cassergren, President V&S Distillers.

V&S will now begin with MBL-negotiations while the unions will be given the possibility to have an employee consultant to study the proposal. If the proposal becomes a final decision, it is V&S’s ambition, together with authorities and unions, to support the Sundsvall plant’s 80 employees.

”We have a history of taking care of our employees, and this mindset will guide us throughout the entire process. We have previously established good contact with the county employment board and recruitment companies, and, if needed, we will employ the necessary expertise in assisting the personnel,” says Cassergren. 

The plant in Sundsvall produces several kinds of traditional spirits brands such as Skåne Akvavit, Grönstedts Cognac and Explorer.

Further information
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