ALK Abello outlines corporate streamlining initiative

ALK Abello has provided details of a new project to streamline its business structure, coming as part of its Simplify corporate initiative.

The company will be consolidating its European sales and marketing organisation and production methods, with a total of three sites to be phased out and their activities consolidated in centres of excellence.

Meanwhile, finance and IT functions are to be organised into unified global structures, with the complete programme of restructuring initiatives set to cost approximately 100 million Danish kroner (10.88 million pounds) up to 2016.

It is thought that these efforts will result in net cost savings of approximately 100 million kroner per year, to be seen gradually from 2013 and with full effect from 2016 onwards.

ALK Abello said: "The streamlining of the sales and marketing organisation will result in savings that will be reinvested in concrete growth initiatives to ensure ALK's continued growth."

This comes after the firm last month published its financial results for the first nine months of 2012, during which it was able to stay on course to meet its overall targets for the year.