"2011 was a challenging year for our FoodTech operations as we faced significant headwinds that negatively impacted our margins. Furthermore, economic uncertainties are pressuring demand in our major markets, particularly Europe and North America. As a result, we are implementing plans to re-align our FoodTech manufacturing capacity to further reduce costs and better address end market demand,"said Charlie Cannon, Chairman and Chief Executive Officer. "These actions are in line with a key element of our 4G strategy to grow margins, and we will continue to monitor the economic environment to implement further actions if necessary."
The Company's cost reduction actions reflect the following:
- Transferring manufacturing of certain freezer product lines to North America and China to improve flexibility to better address local market needs and to mitigate currency impacts in Sweden.
- Consolidating batch sterilization equipment manufacturing footprint to reduce presence in higher cost regions
- Further reducing costs in response to lower demand in Europe and North America
