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Nordkalk to Start Codetermination Negotiations on Gotland, Sweden

Nordkalk (info a nordkalk.com), 21 May 2014

Nordkalk's Swedish subsidiary Nordkalk AB has today informed the unions and employees in Storugns about possible redundancies. They apply to all personnel groups and a maximum of about three quarters of Nordkalk AB's 72 employees in Storugns on Gotland. Codetermination negotiations with the unions will now start and are expected to end in summer.

The timetable and outcome of the permit process for the new limestone quarry in Bunge as well as for the extension of the existing permit for the Klinthagen quarry are very difficult to estimate. As a direct consequence of this, Nordkalk will now start an adjustment process of its activities on Gotland on the assumption that there will not be a decision on the new permit for Klinthagen by the end of 2014. If Nordkalk is granted the permit later on, the company will then take a stand on the consequences the permit might have on the activities.

"We hope, of course, that we will get a new permit for the Klinthagen quarry, in which case we would not need to make such big cuts. However, before everything is cleared up, and in order to stay on the safe side, we must assume that this will not be the case," says Anders Mattsson, Managing Director of Nordkalk AB.

To manage customer deliveries, Nordkalk has, for some time now, been building up a new stock in Storugns and is also going to utilise old ones. This enables the company to secure customer deliveries for most of 2015. Without a continued permit, however, production cannot be continued.

Already in 2006, Nordkalk applied for a permit for a new quarry in Bunge on Northern Gotland to ensure access to the raw material and activities on Gotland. The juridical process has been long and unpredictable and it is estimated to take yet another one to two years. After that, construction work at the quarry site will take about a year. The Bunge deposit is estimated to come into use no earlier than in 2017.

Ever since 2008, Nordkalk has been adapting the production in its current quarry in Klinthagen, in order to prolong its life span in a variety of ways, keep the production going and maintain employment. Klinthagen's current permit ends on 31 December 2014. An application for a renewed permit and an expansion has been filed with the Land and Environment Court in April 2014.

"This has been an extremely difficult decision. The whole time, we have done everything we can to secure employment and maintain our competence, but now it is no longer possible. This is a heavy day for us but above all, for our employees and their families," says Mikael Lindberg, Site Manager at Storugns.

                                                               

Further information:   Mikael Lindberg
 Site Manager, Storugns
+46 (0)10 476 2614 
mikael.lindberg (at) nordkalk.com 

Anders Mattsson
Managing Director, Nordkalk AB
+358 (0)20 753 7168 
anders.mattsson (at) nordkalk.com

Nordkalk the leading producer of high-quality limestone-based products in Northern Europe. The products are used e.g. in environmental care, in the paper, steel and building materials industries as well as in agriculture. Nordkalk has operations in 9 countries and employs some 1,050 people, of which 170 in Sweden. Nordkalk invests in the co-existence of industrial operations and environmental care, and our operations have been certified according to the ISO 14001 environmental standard. Nordkalk is a member of the Rettig Group. Further information: www.nordkalk.com

Leader in Northern Europe

Nordkalk is the leading limestone company on its home markets. We deliver essential raw materials to numerous industries, and our solutions contribute to clean air and water as well as productivity of agricultural land.