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Atlas Copco plans to move assembly from the UK to Hungary

28 September, 2007

Atlas Copco is planning to close its pneumatic power tool assembly operation in the UK and transfer it to Hungary. The move, designed to boost the company’s long-term competitiveness, is expected to affect about 85 of the 200 people who work at the Hemel Hempstead plant.

Atlas Copco is planning to a consultation process with workers at the plant, which produces pneumatic tools under the CP Desoutter brand for the automotive and general industrial markets. Costs related to the proposed move amount to around £3.8m.

"We regret the unfortunate situation this change will represent for our employees in Hemel Hempstead, and the company will take every reasonable action to assist those affected in achieving alternative employment, either within or outside the Atlas Copco Group," says Fredrik Möller, president of Atlas Copco’s Industrial Technique business.

Great Britain is an important market for Atlas Copco and the changes will not have any effect on the marketing, sales and service of CP Desoutter products, he adds. "This reorganisation will give us the efficiencies of production and administration to be able to operate in the market with a greater competitive edge and to further develop the range and quality of products to the benefit of our customers."

The Hungarian factory, located close to Budapest, will become fully operational during the first quarter of 2008.

"This is part of our strategy to increase sourcing from Eastern Europe and Asia," says Möller. "By establishing production in Hungary, we are lowering our cost base and safeguarding our future growth prospects."

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