Accell Reorganizes Radically in the Netherlands
HEERENVEEN, The Netherlands – Accell Group NV has announced a drastic reorganization of its operations in the Netherlands. It will result in the loss of approximately 60 jobs.
Last February, at the presentation of the annual results for 2012, this reorganization was already announced. After three consecutive years of deteriorating results on its home market, resulting in a 13% revenue drop, drastic measures became inevitable. Last February the bike holding company said: “Accell Group will in the near future look at how it can further intensify the cooperation between its Dutch companies or combine the activities for, among others, an increase in capacity utilization.”
Accell Group has now announced that it is to merge the production of bikes for Batavus (located in Heerenveen) and Sparta (in Apeldoorn) in its Heerenveen, the Netherlands facility. The holding company also stipulates in a press release: “For Juncker Bike Parts (Accell’s Dutch wholesale company) investments will be made for a complete new warehouse system whereby the whole Juncker Bike Parts organization will be moved to the vacated location in Apeldoorn. Furthermore the storage and shipment of service and warranty parts for Batavus, Koga and Sparta can take place from the new warehouse in Apeldoorn.”
Loss of 60 jobs
The relocation will result in a loss of approximately 60 jobs. Accell Group CEO René Takens: “The futher decline of the Dutch bicycle market forces us to make this drastic adjustment with regard to the organization in the Netherlands. Combining the production activities of Batavus and Sparta enables us to achieve an acceptable capacity utilization.”
In a further explanation René Takens said to Bike Europe that, despite the production merger, the Sparta and Batavus brands will continue to operate strictly separated. “What stays in Apeldoorn are employees that are directly related to the Sparta brand which is marketing, product management, purchasing and sales. Apeldoorn remains also Accell’s e-bike service center. Sparta’s production management staff will move to Heerenveen.”
The reorganization of Accell’s Dutch operation, that has a total workforce of 595 employees, will be conducted in phases during the period from August 2013 until December 2014.
The holding company notes further in its press release: “The reallocation of the activities in the Netherlands will result in structural cost savings amounting to €2 to 3 million on an annual basis from 2014 onwards. The recurring costs for which a provision will be taken in the results over 2013 are expected not to exceed the yearly cost savings.”