Alfa Laval adapts the organization to changing market fundamentals

LUND, Sweden, Dec. 16, 2020 /PRNewswire/ -- Alfa Laval - a world leader in heat transfer, centrifugal separation and fluid handling - announces the launch of global restructuring program to address structural imbalances and accelerate the digital transformation.

As announced in connection with the third quarter report, Alfa Laval will adapt the organization to changing market fundamentals. A targeted restructuring program is being launched, mainly addressing structural imbalances in specific parts of the upstream Oil and Gas business as well as part of the Marine business.  In addition, the program will further drive the competence shift required in light of the accelerated pace of digitalization.

The restructuring cost is expected to amount to approximately 850 MSEK, of which 350 MSEK is related to goodwill write-downs in Oil and Gas related businesses. Approximately 700 MSEK is expected to be charged in the fourth quarter of this year, with the remaining part to be charged in the second quarter of 2021.  Approximately 600 employees mainly in Europe and North America will be affected by the program, of which some have already left the company. The program will generate annual savings of around 300 MSEK, with full effect expected from mid-2022.

Further details of the restructuring program will be provided in connection with the fourth quarter report.

For more information please contact:

Johan Lundin
Head of Investor Relations
Alfa Laval
Tel: +46 46 36 65 10
Mobile: +46 730 46 30 90

This is Alfa Laval

Alfa Laval is active in the areas of Energy, Marine, and Food & Water, offering its expertise, products, and service to a wide range of industries in some 100 countries. The company is committed to optimizing processes, creating responsible growth, and driving progress - always going the extra mile to support customers in achieving their business goals and sustainability targets.

Alfa Laval's innovative technologies are dedicated to purifying, refining, and reusing materials, promoting more responsible use of natural resources. They contribute to improved energy efficiency and heat recovery, better water treatment, and reduced emissions. Thereby, Alfa Laval is not only accelerating success for its customers, but also for people and the planet. Making the world better, every day. It's all about Advancing better™.

Alfa Laval has 17,500 employees. Annual sales in 2019 were SEK 46.5 billion (approx. EUR 4.4 billion). The company is listed on Nasdaq OMX.

www.alfalaval.com

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SOURCE Alfa Laval