Uponor announced on Tuesday that it will launch a streamlining programme in an attempt to adjust its operations to the sluggish demand in Europe, estimating that the cost-cutting measures will affect the jobs of roughly one hundred employees in its Building Solutions Europe segment.
The provider of plumbing, heating and cooling solutions began negotiations over the redundancies of 20 full-time and 20 part-time staff members in Sweden in June.
“The development of our largest market in Europe, Germany, was unsatisfactory, and its effects have been felt across our entire supply chain in Europe,” Jyri Luomakoski, the managing director at Uponor, stated in a press release.
A decline in the net sales of the building solutions segment is a reflection of the market conditions in Europe. The conditions have deteriorated especially in Germany, Finland and the United Kingdom, according to Uponor.
Regardless, the operating profits of Uponor surged by some 25 per cent to 22.5 million euros in the second quarter of the year. Uponor also revealed in its interim report that its group-wide net sales crept up by 5 per cent from the second quarter of 2014 to 278 million euros.
Reetta Heiskanen – HS
Aleksi Teivainen – HT
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Photo: Kari Pullinen