Industry News

As part of Bulten’s strategy to maintain a strong operational platform, the company has reviewed its global distribution chain. This has prompted a decision to close one of the two logistics centres in Sweden and a manufacturing plant in the UK.

Aiming to bring about more efficient logistics in order to reduce lead times, and streamline processes, while also reducing costs and environmental impact, Bulten has been reviewing its global distribution chain. The company has decided that utilising capacity in warehouses close to production units to a greater extent, will enable a more efficient supply chain. Accordingly, significant investments have been made in a new warehouse near Bulten’s factory in Germany, and in a new surface treatment plant and a logistics centre in Poland. The streamlining will involve the closure of Bulten’s logistics centre in Gothenburg, Sweden.

The goods flow that previously passed through Bulten’s logistics centre in Gothenburg will now be handled by the centre in Hallstahammar, Sweden, and by the above mentioned logistics centres in Germany and Poland. Ten employees will be affected and trade union negotiations have been initiated. The closure is planned for completion by the end of the second quarter of 2023.    

“Streamlining the distribution chain will allow better transportation flows and thereby also reduce environmental impact. It will also help us reduce costs and capital tied up,” says Anders Nyström, president and CEO of Bulten.

Closure of manufacturing plant in the UK

Another step in Bulten streamlining its operation and improving profitability, includes the closure of its manufacturing plant in Pembroke, UK. The closure means that 50 jobs are at risk of redundancy.

The closing down process was announced in December, and the plan is to complete the process during the second quarter of 2023. Total restructuring costs amount to approximately SEK11 million (€979,000), of which SEK9 million was reserved for 2022. There will be additional investments totalling about SEK12 million in connection with the closure. These primarily relate to relocation of equipment and production to Bulten’s other manufacturing plants, along with a few new recruitments.

“It is unfortunately difficult to achieve profitability with the mix of products made in Pembroke, and also volumes are relatively low. By moving the parts of production that have long-term potential to our other plants, we can achieve better efficiency and thereby higher profitability. This is in line with our strategy, which includes better utilisation of our production network,” explains Anders Nyström.

The operation in Pembroke became part of Bulten Group in 2020 with the acquisition of PSM International. Fifty people are currently employed at the plant, manufacturing and purchasing fasteners for different industrial segments. Bulten’s other operations in the UK will not be affected by the closure of the Pembroke plant.