March 30, 2017
Grundfos announces plans to simplify, optimise and consolidate the production and distribution setup in Europe to further strengthen our position as the world’s leading pump manufacturer and the preferred choice of our customers.
The plan includes an optimised production setup in Europe and the establishment of a new central, European distribution centre. In the process, we plan to transfer and consolidate production lines in our existing factories.
This proposal is fully aligned with the Grundfos Strategy 2020 and Group Must Win Battle 2, the overall goal of which is to make our end-to-end supply chain a competitive advantage.
“We want to strengthen, simplify and consolidate our production and distribution setup. This would give us an advantage in a very competitive environment and make it easier to give the best service to our customers. This proactive plan would help us meet the challenges and opportunities we expect ahead – especially in the HVAC OEM industry,” says Niels Møller Jensen, Regional Operations Vice President.
“We plan to establish a central, European distribution centre, which would provide better and faster delivery service to our customers. And we would gain better access to major air cargo and sea cargo gates,” says Zoltán János Szabó, Corporate Logistics Director.
According to the plan, facilities in France, England, Germany, Switzerland, Hungary, Serbia and Denmark would be involved in the changes, and up to 390 Grundfos employees would potentially be affected.
“Unfortunately, good and loyal colleagues potentially risk losing their jobs, but due to the competitive environment, overcapacity and the need to simplify our operational footprint, we have concluded that the planned actions are necessary,” says Niels Møller Jensen.
We are currently informing all affected employees, and we have initiated the dialogue with both the European Works Council and thelocal works councils.