Welcome to JSA Consultancy Services

A business consultancy, based in London, England, John Sacks' JSA Consultancy Services provides expert, in-depth, information advice and guidance as to how to exploit successfully the office furniture and interiors markets in Europe, North America, Australasia and Japan.

Steelcase to move production from Germany to the Czech Republic

Friday 18 October 2013

Steelcase Inc.announced today two actions intended to safeguard its global competitiveness through changes in its EMEA manufacturing footprint. The Company has initiated procedures with the applicable works councils regarding the closure of a manufacturing facility in Germany. In connection with this project, the Company expects to incur approximately $20 to $25 million of cash restructuring costs, with approximately $15 to $20 million relating to workforce reductions and approximately $5 million relating to manufacturing consolidation and production moves. The amount of restructuring costs expected to be incurred in fiscal year 2014 for this project are immaterial, with the majority of costs associated with this project expected to be incurred in fiscal year 2015. In addition, the Company anticipates it will incur approximately $5 to $10 million of costs associated with labor inefficiencies over the next eighteen months as a result of the manufacturing consolidation and production moves.

The Company also announced an investment to establish a new manufacturing location in the Czech Republic. The Company expects to make capital investments in this facility of approximately $25 million, with initial investments expected to be approximately $10 to $15 million during the third and fourth quarters of fiscal year 2014. These amounts are incremental to the Company’s previous estimates of capital expenditures for fiscal year 2014.

The Company anticipates annualized savings from these actions will be approximately $10 million when fully implemented by the end of fiscal year 2016.

The Company stated that the economic environment in Western Europe remains challenging, impacting the demand for the Company’s products in the EMEA segment. The actions being announced today, in addition to previously announced actions, are part of the Company’s on-going multi-year EMEA strategy to improve revenue and the fitness of its business model. The Company anticipates the EMEA segment will continue to report adjusted operating losses until the benefits of the multi-year EMEA strategy are more fully realized and the overall economic environment in Western Europe improves.

Subscribe to our News Page

Enter your email here and we will tell you when this page is updated.

 

 

moreLatest News

Thursday 31 August 2017 Chinese furniture supplier to create 122 new jobs, invest $4.9M in West Michigan

GRAND RAPIDS, MI - A Chinese company that makes office furniture components is planning to build a n

Tuesday 15 August 2017 HON office furniture invests $14.5 million in expansion, creates 60 jobs

CEDARTOWN, Ga. - Office furniture manufacturer HON Company will invest $14.5 million in an expansion

Wednesday 9 August 2017 Martela Corporation Half Year Financial Report 1 Jan - 30 June 2017

The January-June 2017 revenue and operating result declined from the comparison period. Decline in r

Wednesday 9 August 2017 Former Herman Miller CEO Max De Pree dies at 92

Known as an accomplished author, businessman and man of Christian faith, De Pree served as CEO for t

Contact Us

JSA Consultancy Services
4-5 Gray’s Inn Square, Gray’s Inn,
London, WC1R 5AH, England


+44 (0) 20 7670 1510