FRANKFURT Oct 5 German food-technology group
GEA plans to consolidate its manufacturing sites and
optimise its supply chain to achieve gross savings of 60 to 80
million euros ($67 to $90 million) by 2019, it said in
presentation slides published on Wednesday.
GEA - whose products include milking machines, refrigeration
units and food-chemicals technology - said it could not yet tell
what the net savings effect of the changes would be.
The consolidation of production into multi-purpose sites
will require major capital investments, GEA said in the
presentation to analysts, adding that it would decide on what to
do with any leftover cash in March or April of next year.
GEA shares fell 3.2 percent to 48.16 euros by 1307 GMT, and
were among the leading decliners in the German mid-cap index
, which was down 0.6 percent.
GEA also said it might "tactically choose to stimulate
growth in certain regions through more competitive pricing."
($1 = 0.8925 euros)
(Reporting by Georgina Prodhan; Editing by Edward Taylor)