The overall model is one customer service hub per Business Area in Europe, and Group sales offices in Brazil, China, the US and Russia. By moving Customer service closer to supply and planning, pooling resources and avoiding sales office costs, Munksjö would improve profitability and the supply chain process would be more efficient.
As a result some regional offices may be closed or have a reduction in the number of employees. The following sales offices would be affected by the changes; Wavre in Belgium, Lingolsheim, Pont Eveque, and Fontenay-sous-Bois in France, Munich in Germany, Legnano and Turin in Italy and Spain.
The number of employees affected by the reorganisation would be approximately 30. The planned reorganisation would commence during 2015 and the expected annual savings are approximately Euro 1-1.5 million of which a majority would be realised by 2016, adding to structural savings in the sales network realized already during 2014.
The Group will record a non-recurring cost for the reorganisation of approximately Euro 2.5 million in the 4Q 2014 and the majority of the related cash outflow is expected to occur during 2015. The previously estimated costs in relation to the synergy and integration activities are lower than expected and as a result the group will record a non-recurring income of approximately Euro 1.5 million in the same quarter.