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GEA to consolidate sites, optimise supply chain
October 5, 2016 / 1:12 PM / a year ago

GEA to consolidate sites, optimise supply chain

FRANKFURT, Oct 5 (Reuters) - 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)

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