Kährs Adjusting Capacity for Lower Demand
Stockholm, Sweden, January 12, 2023-Kährs will adjust its capacity to meet a lower demand for flooring solutions in the residential segment in 2023, both in renovation and new built.
The market is highly affected by increased interest rates and a high inflation, especially in Europe, contributing to a clear drop in market demand from record levels and high orderbooks in 2022.
Low consumer confidence is creating challenges in demand in Europe moving forward. Higher prices, on energy in particular, continue to be a big challenge. Combined with a general rise in inflation and the risk of continuing rising interest rates and falling house prices. Kährs is preparing and adapting its operations with a focus on cost control and capacity adjustments to ensure continued low debt and a strong cash flow.
To adjust capacities and to mitigate the effects of lower demand in 2023, Kährs implements a plan to lower the capacities in all its European factories in steps, affecting a total of 175 coworkers.
In the Swedish production site in Nybro, Kährs has announced a notice of 100 employees, 95 blue-collar positions and five white-collar, in addition to 25 temporary employees that left during the latter part of 2022. Negotiations with union parties have been initiated. Affected employees will receive information during the first quarter 2023 and the redundancies will start to take effect from April 1.