l In an October 1 message to employees, Hempel Group president and CEO Ditlev Engel announced the first phase of a reorganization plan: the shuttering of production in Germany and the elimination of 110 employees in Germany, Spain and Denmark.
Mr. Engel said the company has to “face that the trend in Europe, especially within the manufacturing maritime industry, has deteriorated markedly, a sad fact which unfortunately has affected and will affect Hempel’s earnings in coming years extremely negatively if we do not address this problem as soon as possible.”
Hempel’s German factory in Pinneberg, in operation since 1956, will be closed by the end of June, 2004. Production will be transferred to Hempel’s existing factories in Portugal, France and Malaysia, “since today they are able to produce this at considerably lower costs,” according to Mr. Engel.
The process will be completed by July 2004, according to company officials.