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After cutting its Spanish workforce by 65 people at the end of 2008, plumbing and heating-system supplier Uponor is looking to reduce headcount at its operation in Virsbo, Sweden, by 52. Uponor's Nordic division employs 1380, while Spain falls under its West East South (WES) division, with 1220 employees.
Tony Deligio
January 14, 2009
2 Min Read
.svg?width=850&auto=webp&quality=95&format=jpg&disable=upscale "Extrusion: Uponor extends job cuts beyond Spain to Sweden")
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After cutting its Spanish workforce by 65 people at the end of 2008, plumbing and heating-system supplier Uponor is looking to reduce headcount at its operation in Virsbo, Sweden, by 52. Uponor's Nordic division employs 1380, while Spain falls under its West East South (WES) division, with 1220 employees. Tarmo Anttila, VP communications at Uponor, told MPW that consultation with Swedish employees is ongoing, although the negotiations are expected to be concluded shortly. After the divestment of its utility business in the U.K. and Ireland, Uponor no longer has manufacturing left in those countries. Anttila said the company still operates its housing solutions business in both countries. As early as the second half of 2007, the extruder of cross-linked polyethylene and composite pipe saw a fall in demand, led in Europe by Germany and Spain, with a sharper than expected drop off in North America, according to its annual report, with new housing starts falling by 25% in the U.S. in 2007. In the face of a 39.8% drop in operating profit in the third quarter of 2008, Uponor announced a company-wide cost-reduction program in August that aimed to cut euro 30 million in costs and would initiate in 2009. In 2008, the company divested its infrastructure businesses in the U.K. and Ireland, as well as its German business, Uponor Klärtechnik GmbH. Discussing the global building and construction market, Uponor noted at the time it had deteriorated and "no improvement" was in sight.In the final quarter of 2008, net sales from Uponor's continuing operations fell 7.3% from euro 809.2 million to euro 750.3 million, with profits plummeting 35.5% from euro 110.3 million to euro 71.1 million. Looking forward, the company expected sales and profits to be below 2007 levels. According to the most recent data from the U.S. Census Bureau, housing starts in the U.S. in the third quarter of 2008 totaled 162,000, down from 265,000 in the previous year. Housing starts peaked in the second quarter of 2005, reaching 485,000. In comparison, housing starts totaled 518,000 through the first nine months of 2008, compared to 858,000 over the same time period in 2007. Spain is enduring its own housing crisis, with completed home sales down by 27% in January 2008 compared to a year earlier.
According to the Uponor's 2007 annual report, the Europe West East South (WES) region accounts for 32.7% of its sales, followed by Nordic countries (29.2%), Central Europe (25.8%), and North America (12.4%). Personnel is split relatively evenly between Nordic countries (30.1%), Western Europe (28.4%), and Central Europe (28.2%), with North America accounting for 13.3%.—[email protected]
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