Measures for cost reduction adopted

Unior d.d. is with its production programs Forge, Sinter and Special machines closely incorporated in the European automobile industry. With forge parts for connecting rods of cars, forge parts for steering mechanism, sintered parts and special machines Unior achieved enviable market share which has grown equally in the last few years.  Unior practically collaborates with almost every European car manufacturer and with their system suppliers. Almost without any exception, problems with order decrease and even cancellation of given orders are inevitable. In the Forge programme where products are supplied direct to the production lines of car manufacturers these problems are the most obvious.

In the present situation, Unior has to take some exceptional measures for cost reduction. A few of them are: part time work, non-renewal of limited duration employment contract, assignments of workers on other workplaces, stores reduction and carefully planed investments. Unior will be very selective and long-term cautious with new projects, especially on above mentioned areas.

In December all affected programs will adjust working time to their buyers which are announcing the stop of production on 15 December. The production will exceptionally continue according to received orders.

According to already known data in the first quarter of the year 2009 there is no improvement of order state expected that is why all plans need the adjustment to this state. This means sale reduction and consequently the reduction of production for 5-15%, it depends on sale-production programs of the company. All measures will require a purpose accommodation of these facts. Despite modified conditions of management economical and finance stability of our system must be preserved.