Alfa Laval to separate heat exchangers

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SWEDEN: Alfa Laval has announced that three of its heat exchanger product groups are to be separated from the rest of the business as part of a major restructuring.

Alfa Laval has included its commercial/industrial air heat exchangers, commercial tubular heat exchangers and heat exchanger systems businesses in an initiative it is calling the Greenhouse, which will be managed separately from the new divisional structure.

The aim, it says, is to provide these units with the best possible conditions to improve performance and develop the activities in a focused manner.

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Faced with weak demand in its oil and gas and marine markets, the Swedish manufacturer says it intends to create a leaner organisation. This will include changes to its “manufacturing footprint” starting in 2017.

The reorganisation is expected to include some 700 redundancies.

Third quarter sales figures released last month showed order intakes down by 14% to SEK23,351m (€2,359m) and net sales down 9% to SEK25,730 (£2,600m) compared to the same period last year.

Related stories:

Restructure provides sharper focus


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