MONTREAL, Oct. 15 /CNW Telbec/ - Mecachrome International (TSX: MCH)
announced today progress on its profitability improvement plan previously
announced on July 15. The Company will be reducing its workforce by 120 people
in its Canadian operations, a measure which is expected to result in annual
savings of approximately (euro)3.5 million. Of these annual savings,
(euro)2.0 million would be realized in 2009 and the associated costs are
expected to be (euro)2.0 million. These layoffs will be implemented throughout
2009 and will not affect our ability to deliver on our client commitments.
"We deeply regret the impact of this announcement on our affected
employees, however we need to take strict measures to improve our cash flow
profile" said Mr. Gérard Casella, Mecachrome's Chairman, President and CEO.
"This is the first initiative we announce pursuant to our operational review.
This review is still ongoing and we continue to assess potential ways to
improve our profitability."
Mecachrome plans to make further announcements regarding its action plan
at its third quarter earnings release.
Mecachrome is a leader in the design, engineering, manufacture and
assembly of complex precision-engineered components for aircraft and
automotive applications, including aerostructural and aircraft engine
components, high-end automobile engine components and motor racing engines.
Since 1937, Mecachrome has established a significant presence and global
reputation in certain high-precision sectors of the aerospace, automotive and
industrial equipment industries, providing services primarily to original
equipment manufacturers. The company currently operates 11 state-of-the-art
facilities, principally in France and Canada. For more information on the
company, visit www.mecachrome.com
For further information:
For further information: Elina Tea, Director Investor
Relations/Corporate Finance, (514) 373-2009, email@example.com