STOCKHOLM, April 27, 2020 /PRNewswire/ -- Manufacturing strategist HANZA Holding AB (publ), listed on NASDAQ Stockholm, today publishes its interim report for the first quarter, 2020. The company describes how the covid-19 outbreak has negatively affected operations in the period and further expects that both the economy and the demand will continue to weaken during 2020. Hence, in April HANZA initiated an action program which among other things include redundancies in Sweden and Estonia for approximately 90 people. At the same time HANZA notes that the pandemic creates an increased need for revised supply chains which is in line with HANZA's offer of complete and regional manufacturing close to the customer.
FIRST QUARTER (1 January - 31 March 2020)
CEO Erik Stenfors comments on the report
"During the quarter, covid-19 has negatively impacted HANZA in waves. First through the closure of our factory in China and some component shortages in Europe. Then, by the extensive spread of infection in the rest of the world, which resulted in a rapid slowdown of the economy and reduced demand in certain customer segments."
" We expect there will be further volume reductions in quarter two. Hence, we launched an action program in April, aimed at reducing our fixed costs without having to limit our unique offering with complete manufacturing. Among other things, we are streamlining HANZA's production facilities to embrace only specific technologies within the respective production clusters, which regrettably results in redundancies in Sweden and Estonia of approx. 90 people."
"One effect of the pandemic is that weaknesses and risks in global supply chains have become apparent, and thereby increased the need to streamline the manufacturing industry. That is, an increased need that is in line with HANZA's offering of complete regional manufacturing close to the customer. Therefore, the pandemic creates new opportunities for HANZA in the long term."
For further information please contact:
Erik Stenfors, CEO, Tel: +46-709 50 80 70, e-mail: [email protected]
Lars Åkerblom, CFO, Tel: +46-707 94 98 78, e-mail: [email protected]
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The following files are available for download:
HANZA interim report Q1 2020