New structure for Elmo Leather
12/01/2009
Swedish tanner and leather processor Elmo Leather has successfully completed the restructuring and refinancing exercise it announced on December 12. It said it had been able to achieve a successful outcome with the support of banks and suppliers and in compliance with Swedish law.
The reason it gave for taking this step was a dramatic decrease in demand for its leather, with a fall of more than 50 % in incoming orders from August onward compared to 2007.
President and chief executive, Nalle Johansen said the outlook for 2009 for the European tanning industry remained tough, but that his company had a big advantage because it was starting the new year “with stable finances and a cost structure adapted to the present market situation”.
As a part of the reconstruction the ownership of the company has changed. The two former owners, Mr Johansson and chief finance officer, Anders Bengtsson, remain as shareholders. Anders Johansson, vice-president of production and Thomas Gregor, vice-president of sales and marketing are new shareholders.
Mr Johansen said the employees and management of the company were highly motivated and looking forward to “maintaining the supply of high quality leather to our customers”.
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