The board members of Agfa-Gevaert released the company's previously announced Horizon growth and efficiency plan today. In line with the trend toward digital technology, the Mortsel, Belgium-based, vendor said it would pursue profitable growth by emphasizing digital technology, and by strengthening its positions in its traditional businesses.
To achieve this goal, Agfa said it is reducing overhead and production costs, as well as converting fixed costs into variable costs. The company hopes to achieve a permanent decrease in operational costs of approximately $504 million (U.S.) and a reduction of working capital with $458 million by 2003.
As part of this plan, Agfa will take a one-time estimated restructuring cost of $504 million, which is equivalent to a reduction of 4,000 jobs, the company said. The charge will be spread over the years 2001 to 2002. The company believes that beneficial effects of its plan will occur in 2003 and will reach full impact in 2004.
By AuntMinnie.com staff writersSeptember 27, 2001
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