Nordic Business Report-October 30, 2006-Denmark's Coloplast A/S updates manufacturing strategy, prepares to move part of production to Hungary and China
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Danish medical device company Coloplast A/S announced on Monday (30 October) its updated strategy for its manufacturing activities.
The overall aim is to "achieve world-class manufacturing within the next three years" and it involves reducing the number of Danish production facilities from six to three and establishing new facilities in Hungary and China.
"The future manufacturing activities will be based on the lean flow method. This means that to the extent practical the whole manufacturing process per product will be under one roof and be executed by the same manufacturing unit," Coloplast said.
Coloplast said that the new strategy will involve reducing the number of personnel in Denmark from the current 1400 employees to approximately 700 employees by 2012. At the same time the number of personnel outside Denmark will be increased from the current 1,800 to 3,800.
Coloplast stressed that the consolidation of production in Denmark will not involve lay-offs among production workers.
"The rate of transfer of production out of Denmark will not exceed the staff turnover rate among production workers," Coloplast said.
Coloplast, headquartered in Humlebaek, Denmark, develops and sells products and services within ostomy, continence care, wound care, breast care and skin care. Coloplast is listed on the Nordic Exchange in Copenhagen.
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