By Uniongal (aka Bendygirl)

crossposted on uniongal

I know this is coming as a SHOCK to everyone here, but Kongsberg has decide to CLOSE another plant. This one is in Sweden, again. Wonder if they’re moving those operations to the new Polish plant or somewhere with even fewer environmental laws and lower taxes. But hey, don’t take my word for it, take a read of ABN:

Kongsberg, Norway, April 23, 2008 - Kongsberg Power Products Systems AS, which is a subsidiary of Kongsberg Automotive Holding ASA, has declared it is considering proposals regarding closing the factory in Märsta, Sweden and intends commencing negotiations with the Unions. The factory in Marsta has 54 employees, and the workforce will be informed at meetings today. The facility today produces heavy duty cables, pedals, hand controls, hydraulic valves and electrical components to the Commercial Vehicle and off-highway vehicle market. The potential closure of the factory may lead to a transfer of production in Märsta to existing Kongsberg Automotive locations within Europe. Kongsberg Power Products Systems AB will continue to service its customers through its operations in Ljungsarp, Sweden. The potential closure is due to the company's need for realizing cost savings in order to improve overall competitiveness. "To Kongsberg Automotive, it is decisive that we find ways to optimize our production in order to stay competitive in an ever increasingly competitive global market. The potential transfer of business from Märsta will better align us to market needs and restore profitability for the Division to an acceptable level", says President for Power Products Systems, Jim Ryan.

I want you to take a look at the emphasized text. I bolded it for one reason, this is the theme for Kongsberg.

Closure of plants despite profitability in hopes for greater profitability down the road. Basically, it’s Greed for Greed sake.

So, I look to the locked out workers in Van Wert and I have to say, I’m not sure why I’d ever take a reduction in income to work for a company that treats it’s works like they’re disposable.

The profitability of any company is based on the production and frequently also the quality of work that is done on that company’s behalf. Well, all except Wal-Mart who seems to think they can do anything without recourse, but I digress.

Kongsberg Automotive seems to be of the mind that being profitable isn’t enough, they must better align to market needs so as to bring each Division up to their acceptable level for profitability. I wonder what that level is? And why it is that the people who helped to make the company profitable in the first place are the people reduced to nothing in the hunt for greater profits down the road, somewhere else.

Kongsberg Automotive seems hell bent on adding to their history of greed.



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