Atomic reorganisation close to completion Koflach plant to continue, in-line skates to be sourced from Asia
1998-08-25, 01:00
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As a result of the reorganisation program launched last year, staff numbers at Köflach have been reduced from 350 to some 60 people employed in boot production. The plant produces Atomic-branded alpine ski boots, Oxygen-branded snowboarding boots and Koflach-branded mountaineering boots as well as certain models of Oxygen-branded in-line skate hard boots. Management at Altenmarkt will now take direct responsibility for the activities at Köflach. Amer is also actively seeking further ways to utilise the factory`s production capacity, e.g. through sub-contracting. The need to take reorganisation measures was primarily attributable to the in-line skate business where sales and profitability have been declining drastically. Furthermore, Köflach`s technology is not compatible with soft-boot skates. Therefore all Oxygen`s new soft-boot skates will be sourced from Asian sub-contractors in the future. Two weeks ago Atomic`s ski factory had to lay off slightly over one hundred employees, as their permanent contracts were converted into part-time contracts with the aim of increasing production flexibility and plant competitiveness. `Atomic`s beta-carving skis and new ski bindings have been well received and orders are up compared to last year. We now have very competitive products as well as competent and committed management and other staff. We are confident that the measures taken will boost Atomic`s operating result to break-even level in 1999`, says Mr Roger Talermo, President & CEO of Amer Group. `Contrary to rumors circulating in Austria, Amer is not planning to sell the ski factory. All we need now is conditions free from such disruptions and distractions`, he adds.
Mr Roger Talermo, President & CEO, Tel. +358 9 7257 8210
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