14/07/2017

14 July 2017
14 July 2017, Comments Comments Off on Dometic consolidates operations in China
Dometic consolidates operations in China

Dometic Group AB (publ) has signed an agreement to divest an industrial property in Shenzhen. The divestment is a natural step in the strategic manufacturing footprint consolidation in China. Production will be relocated to the facility in Zhuhai and another facility in Shenzhen.

The divested production facility comprising of a total of 14,000 square meters. The selling price amounts to CNY 160 million (approximately SEK 205 million). The expected net gain will amount to CNY 80-100 million, and the full amount will be recognized in the result in the third quarter 2017. 70 per cent of the cash flow impact will materialize during 2017 and the remaining 30 per cent during the first half of 2018.

“The property divestment is part of the strategic consolidation of our Chinese operations. This allows us to focus our manufacturing activities in fewer sites in China and continue to improve production efficiency”, says Roger Johansson, President and CEO of Dometic.