Efore - Company Announcement

Efore continues efficiency measures with a target to EUR 7 million annual savings

Espoo, Finland, 2016-10-19 07:30 CEST (GLOBE NEWSWIRE) -- EFORE PLC  Stock
Exchange Release    October 19, 2016 at 8.30 a.m. 


Efore Plc continues its group-wide efficiency improvement measures, in order to
improve the Group's profitability. As a part of the measures the Company has
closed the master supply and asset agreements with Wuxi Hodgen Technology
related to the outsourcing of manufacturing and manufacturing support functions
at the Suzhou plant in China, as disclosed on October 10. 2016. Efore will
remain responsible for the quality of the delivered products as well as for the
NPI (New Product Introduction) process. This outsourcing arrangement will give
the Company better opportunities to focus on power technology, R&D and customer
collaboration. Furthermore, the new financing agreement closed this autumn
enables execution of planned actions. 

The outsourcing of the production in China creates a possibility for Efore
Group to renew its operating model and to initiate a substantial cost savings
program. The target is to simplify Efore’s operating model. The new planned
operating model requires structural changes that enable permanent reductions in
the level of the fixed costs in Efore. Further planned streamlining actions
will also be implemented in order to improve profitability. 

Efore’s intention is to initiate cost savings program immediately. The
implementation period for the program is estimated to continue at the end of
2016. Substantial one-time costs related to the actions from the planned cost
savings program and the outsourcing of the production are estimated to be
approximately EUR 5-6 million which have an effect on the capital structure of
the Company. The Company is planning measures to strengthen its equity at the
end of 2016. 

With the planned cost savings program, the structural changes and the
outsourcing of the manufacturing in China Efore is targeting up to EUR 7
million annual savings in fixed costs. 

EFORE PLC

Jorma Wiitakorpi
President and CEO

For further information please contact Mr. Jorma Wiitakorpi, President and CEO,
on October 19, 2016 at 10.30 – 11.30 a.m. tel. +358 40 175 8510 

DISTRIBUTION

Nasdaq Helsinki Oy
Principal media

Efore Group is an international company which develops and produces demanding
power products. Efore's head office is based in Finland and its R&D functions
are located in Finland, Sweden, Italy and China. Sales and marketing operations
are located in Europe, United States and China. In the fiscal year ending in
December 2015, consolidated net sales totalled EUR 89,9 million and the Group's
personnel averaged 887. The company's share is quoted on the Nasdaq Helsinki
Ltd.www.efore.com