In light of growing demand in most of Ovako’s customer segments, the company has decided to selectively increase the number of shifts at its steel and rolling mills, thereby increasing the utilization of production capacity.
The additional shifts will help reduce bottlenecks in the production and raise Ovako's total available production capacity by around 10 percent, depending on product mix. To staff the additional shifts, Ovako expects to hire about 80 new employees, which are anticipated to join the company during the first and second quarter of this year.
“Although there is still a lot of uncertainty about the long-term development for the industry, we are pleased to see that the positive trend we saw at the end of 2016 has continued into 2017”, says Marcus Hedblom, President and CEO at Ovako.
In parallel with the increase of production, Ovako’s work focused on lowering the company’s structural costs continues as planned. As previously announced the company expects to realize cost savings of EUR 18 million during 2017.
Ovako develops high-tech steel solutions for, and in cooperation with, its customers in the bearing, transport and manufacturing industries. Our steel makes our customers’ end products more resilient and extends their useful life, ultimately resulting in smarter, more energy-efficient and more environmentally friendly products.
Our production is based on recycled scrap and includes steel in the form of bar, tube, ring and components. Ovako is represented in more than 30 countries and has sales offices in Europe, North America and Asia. Ovako’s sales in 2016 amounted to EUR 781million, and the company had 2,773 employees at year-end. For more information, please visit us at www.ovako.com.
This information is information that Ovako Ab (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 08:00 CET on March 13, 2017.