Ontex Brazil will transfer its manufacturing operation in Aparecida de Goiânia to its manufacturing site in Senador Canedo, both in the State of Goiás, as the company says in the press release received by Lesprom Network.
This will result in a non-recurring pre-tax charge in 2018 of up to Euro 30 million, of which approximately Euro 10 million will be a cash cost. This is expected to result in annualized recurring EBIT savings of Euro 7 million. This move was made after an in-depth analysis and considering the efficiency of combining the entire production into a single unit, where it will be possible to deploy efficient technologies and processes.
All alternatives were investigated to minimize impact on Ontex employees in Aparecida de Goiânia, the majority of whom will transfer to Senador Canedo. The change will occur through the 3Q 2018, at which time the Aparecida de Goiânia plant will become inactive.
The Company’s commitment to Brazil and its growth ambition remain unchanged ; this includes the continuation of ongoing investments in research and development, health and safety, and modern technologies in the state of Goiás and Brazil to ensure future growth.
Ontex is a leading international provider of personal hygiene solutions, with expertise in baby care, feminine care and adult care.
