The Sarna group (HQ: CH-6060 Sarnen; www.sarna.com) plans to streamline costs and capacities in its automotive business by the end of 2005 and strengthen its construction activities. In the European automotive division, two out of four facilities in Lüdenscheid, Germany, are to be closed, with the loss of around 350 jobs. Talks are being held with the works council and trade unions to plan the next steps. Assembly is being successively relocated to European low-wage countries. A new plant was brought on stream in the Czech town of Liberec in October. In the US, a plant in Marysville, Michigan, is to be closed, with the loss of some 70 jobs, in addition to the staff cutbacks already implemented. This is how Sarna CEO Matti Paasila, in office since the start of 2003, is countering the “continually increasing price pressure in the automotive industry”.

The “robust” Sarnafil Division is to be strengthened not only through organic growth but also through cooperation with other companies and small-scale acquisitions. Apart from further penetration of the North American market, the expansion already started in China is a major point of focus. Sarnamotive Division Europe is maintaining its rapport with the German automotive industry through its remaining sites in Lüdenscheid and Esslingen. Alongside the improved cost basis for assembly, new markets are to be opened up by alliances and joint ventures. This similarly applies to Sarnamotive Division America, which will focus especially on Japanese and European producers in the USA, through partnerships and joint ventures.

Sarna is planning annual internal and external growth of some 10% for both divisions up to 2006. At the same time, the current measures ought to permit annual savings in excess of CHF 20m, the company says. Restructuring costs will total CHF 27m in all, with CHF 22m to impact on 2003. Sarna is nonetheless expecting a positive result for the current year, with sales in the region of CHF 850m.