Restructuring begins at Elmo Leather
Sweden-based tanner and leather processor Elmo Leather is to restructure and refinance its business as a result of lower demand after the summer.
The company, which mainly produces leather for upholstery and automotive applications, has announced redundancies on four separate occasions over the last year. Between August and November, orders received fell 53% compared with the same period in 2007 and 67% compared with the budget forecast for the period.
According to the company, the outlook in the coming year for tanneries in Sweden, and internationally, remains uncertain. It says that further redundancies in Svenljunga—where it is based—are not likely to have any short-term impact in improving profitability.
It hopes to continue to operate as a reconstructed and refinanced business with more owners. The business will be run as a “slimmer organisation with lower costs and better adapted to the current market and existing demand”.
