Posten Sweden announces structural adjustments, renewal expenditures

In 2003-2005 Posten is revamping its terminal network to contend with continuing meaningful declines in mail volume and to improve its financial situation.

The letter terminal in Norrköping and the parcel terminal in Växjö will be phased out as part of the move.

A series of renewal expenditures and replacement investments will be made.

The move will achieve peak annual cost reductions of around SEK225 million.

The adjustments will be implemented while maintaining high levels of service and without a negative impact on customers.

Approximately 450 employees will be affected. Posten’s career transition program, Futurum, will assist these individuals.

“Mail volume has steadily declined since the mid-1990s. Today, the mail terminals are beset by overcapacity. Against the backdrop of Posten’s current financial situation, coupled with expectations of a continuing drop in mail volume, action must be taken to control costs,” says Bertil Nilsson, head of Posten Production.

The Norrköping terminal will be phased out over a one-year period beginning October 2003. Posten will begin phasing out the Växjö terminal next year; the process will by completed by 2005 at the latest. Other measures will be implemented no later than 2005 to achieve peak annual savings of about SEK225 million.

Please direct questions to:
Posten’s Press Service, phone +46 8 23 10 10

Posten connects people and organizations around the world by delivering mail promptly, reliably and cost-effectively. We drive value creation by combining conventional postal services with convenient electronic solutions, and integrating these services into customers’ businesses. Simply put, we are experts at everything between “From and To.” With over 3,000 retail service outlets, we provide daily service to 4.3 million homes and 500,000 businesses in Sweden. Every day we handle close to 20 million pieces of mail. With sales of over SEK23 billion and roughly 40,000 employees, the group is one of the largest in Sweden. The group’s parent, Posten AB (publ), is wholly owned by the Swedish state. For more information, please visit our Web site at www.posten.se