Restructuring and Rationalization

4/14/2009 9:45 AM EST

As announced previously, Morphic Technologies has initiated a restructuring program aimed at focusing on the Group’s core businesses, Wind and Fuel Cells. As a result, the non-core business Dynamis AB has today been sold to Binar AB. The sale is expected to have a marginally positive impact on Morphic’s financial position. To enable the sale, the company has had to lay off 11 staff.

In Morphic’s other non-core businesses the economic downturn has necessitated rationalization measures. 30 members of staff in the Group have been made redundant and further redundancies cannot be excluded. Following the rationalization measures, the Group has about 200 employees.

A process aimed at the sale of the subsidiaries Aerodyn AB and Finshyttan Hydro Power AB is under way.

The company has initiated a dialogue with industrial and financial partners with the aim of ensuring a successful expansion and exploiting the full potential of Morphic’s wind business. It is difficult to make a statement on the timetable at present, but the company is aiming to complete the process in 2009.
“Since taking the decision last fall to focus on the core businesses in the Morphic Group our number one priority has been to adjust our cost base to the demand for our products. Our business has been affected by the general economic downturn and the financial situation. The decisions taken will enable us to keep control of costs while continuing to focus operations on our core businesses,” Martin Valfridsson, CEO of Morphic Technologies AB, says.