The Nexans Group plans to reorganize business in Europe to support competitiveness
Paris, June 12, 2015 –The initial results of the industrial and functional restructuring implemented in 2014 demonstrate this was the right strategy for the Group’s transformation. However, the efforts already made prove insufficient to put Nexans on a more competitive footing for the long term. Given this context, a study for a new savings project in Europe has been launched.
The document detailing the reorganization project for some subsidiaries in Europe was presented today to the employee representative bodies. This document will be used as the basis for an information and consultation procedure that is now under way.
Within this project, aimed to respond to market challenges and to protect Nexans’ competitiveness, four major improvement drivers have been identified:
- optimize the structure of the Group's support functions
- adapt regional structures
- reduce the fixed costs of Market Lines in Europe
- reduce production capacity for the Utilities Market Line in Europe.
This project may involve all European countries and in particular France, Norway and Germany. The adjustments would result in 478 positions cuts and the creation of 46 new positions in Europe.
Nexans intends on minimizing any social consequences that may arise from the project, taking into account the specific local context and social regulation in each Country concerned. The Group’s wish is that this reorganization project be approached in close cooperation with the employee representatives and social partners both at European level and in each of the subsidiaries concerned, identifying the best possible solutions for redeploying employees and providing individualized support for those employees whose positions may be affected by the project.
Further details should be available at the time of the Half-year financial results release in July 2015.
Nexans brings energy to life through an extensive range of cables and cabling solutions that deliver increased performance for our customers worldwide. Nexans’ teams are committed to a partnership approach that supports customers in four main business areas: Power transmission and distribution (submarine and land), Energy resources (Oil & Gas, Mining and Renewables), Transportation (Road, Rail, Air, Sea) and Building (Commercial, Residential and Data Centers). Nexans’ strategy is founded on continuous innovation in products, solutions and services, employee development, customer training and the introduction of safe, low-environmental-impact industrial processes.
In 2013, Nexans became the first cable player to create a Foundation to introduce sustained initiatives for access to energy for disadvantaged communities worldwide.
Nexans is an active member of Europacable, the European Association of Wire & Cable Manufacturers, and a signatory of the Europacable Industry Charter. The Charter expresses its members' commitment to the principles and objectives of developing ethical, sustainable and high-quality cables.
We have an industrial presence in 40 countries and commercial activities worldwide, employing close to 26,000 people and generating sales in 2014 of 6.4 billion euros. Nexans is listed on NYSE Euronext Paris, compartment A.
For more information, please consult: www.nexans.com