SWEDEN: Carlsberg phases out Stockholm production

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The Swedish subsidiary of the Danish brewer Carlsberg is to end production at its Stockholm brewery, resulting in 300 job losses.

The company has decided to transfer the production of beer and soft drinks from the brewery in Stockholm to Falkenberg and to a lesser extent to Copenhagen.

The transfer of the production will take place gradually, and the process is to be completed during October 2004. It is expected that this decision will improve Carlsberg Sweden's operating profit with approximately SEK70m annually with full effect from 2005.

Though the company said approximately 300 jobs will be shed in Stockholm, some 60 new jobs will be created in Falkenberg. One-time costs related to the restructuring cannot yet be specified.

"The reason for the decision is the past years' weak development in
Carlsberg Sweden's sales and earnings in a market characterized by a very high level of excise duties on beer, substantial parallel import and increasing consumption of discount beer," the company said in a statement.

As to rationalisation of administration in Sweden, a decision is expected to be made in December 2003.

Sectors: Beer & cider

Companies: Carlsberg

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