20 MAY 2015AlCircle.com
Sapa ahead of schedule for planned annual cost cuts worth 1 billion crowns
Edited by : AL CIRCLE
1 min read
Sapa CEO, Svein Tore Holsether told Reuters that they are ahead of their schedule for the 1 billion Norwegian crowns ($134.68 million) worth annual cost cuts, in a phone interview on Monday.
As a result of a joint venture between two of Norway’s biggest industrial firms Norsk Hydro and Orkla, the aluminium extrusion business named Sapa was born in 2013.
The majority of the savings came from the benefits of scale in sourcing, disinvestment of four companies and closure of 11 plants. He also says that around 500 million derived from the firm’s synergy programme has been included in its last year’s results.
Sapa’s EBITDA earnings for the first quarter of 2015 jumped from 1.2 billion crowns recorded last year to 2.2 billion crowns this year. This surge was largely the effect of cuts and weak Norwegian currency.
"We have had the majority of our restructuring, but there will still be some cases that we would have to look into and there is still further upside to what we can do on the sourcing side and optimising our portfolio," he said.
($1 = 7.4252 Norwegian crowns)
As a result of a joint venture between two of Norway’s biggest industrial firms Norsk Hydro and Orkla, the aluminium extrusion business named Sapa was born in 2013.
The majority of the savings came from the benefits of scale in sourcing, disinvestment of four companies and closure of 11 plants. He also says that around 500 million derived from the firm’s synergy programme has been included in its last year’s results.
Sapa’s EBITDA earnings for the first quarter of 2015 jumped from 1.2 billion crowns recorded last year to 2.2 billion crowns this year. This surge was largely the effect of cuts and weak Norwegian currency.
"We have had the majority of our restructuring, but there will still be some cases that we would have to look into and there is still further upside to what we can do on the sourcing side and optimising our portfolio," he said.
($1 = 7.4252 Norwegian crowns)
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