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November 2009
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Machinery News

Recession-hit Rapid restructures
Affected by the global financial crisis, Swedish granulator maker Rapid Granulator has entered into a process of restructuring to enable it to continue operating its business.

The District Court of Jönköping Sweden has granted the company permission to suspend its old debts. This means Rapid will continue to carry out business as usual, including meeting all its service contracts, product guarantees and obligations.

According to its CEO Rolf Gren, since the company is mainly supplying granulators to the production industry, the worldwide drop in production has had a severe effect on its volume as well as margins. “In recent months, we have seen a significant increase in sales and we have taken major steps to reduce cost. Although this has improved our cash situation, unfortunately it was not sufficient. Unlike some of our competitors in other parts of Europe, we are not able to lay off employees on a temporary basis. Therefore, this reconstruction procedure is our only realistic option,” he added.

However, Rapid says the process is not a bankruptcy but one that has been entered into with full cooperation of its bankers.

 
 
 
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