HB Fuller to close five adhesives plants in Europe
HB Fuller will close five manufacturing facilities in Europe and cut about 100 jobs in sales, finance, customer service and research and development (R&D), the US-based company said on Thursday.
Fuller said the changes resulted from its recent acquisition of the industrial adhesives business of Forbo Group.
"As expected, the company has determined that there are sizable opportunities to eliminate duplication in manufacturing and redundant services in the combined businesses," the company said in a statement.
The facilities scheduled for closure are: Chatteris, United Kingdom; Pirmasens, Germany; and Vigo, Spain, as well as the previously announced closures planned for facilities in Borgolavezzaro, Italy, and Wels, Austria.
The facility closures will be staggered over the next two years.
"Streamlining our operations and investing where it makes sense will make the region more efficient and able to provide even better service to our customers,” said CEO Jim Owens.
The plans are subject to Works Council and/or Trade Union consultations and other legal requirements.
Fuller said that with the changes, it hopes to improve EBITDA margin to 15% by 2015 while completing the integration of the Forbo business in the Europe, India, Middle East and Africa (EIMEA) region.
The company also noted that it plans to make capital investments in the EIMEA segment of $90 million over the next three years.
The investments will enable consolidation, facilitate increased production capacity, support new technologies in European operations, and centralize finance shared services and customer service functions in Mindelo, Portugal, the company said.
HB Fuller says it hopes the actions will enable the operating segment to modernize and enhance plant processes and use resources and technology more efficiently.
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