Works extension thanks to pay cut

The Swedish Husqvarna Group is expanding its Gardena works in the district of Heidenheim. One half of the € 3.4 mio cost of the extension is being financed by the workforce, which is taking a pay cut. The metal factory in Niederstotzingen in the Heidenheim district has been undergoing expansion since the end of last year. This is expected to create 2 200 m² of production space to add to the current area of 25 000 m². The Niederstotzingen plant mainly manufactures scissors and knife sets for the Gardena brand. The Husqvarna Group generated consolidated sales amounting to the equivalent of € 3.5 bn in 2012. The result for the first six months of 2013 was € 2.2 bn, six per cent down on the previous year. Husqvarna does not provide precise sale figures for Gardena. A company report indicates that the brand is responsible for some ten per cent of group sales.