FlexQube insources distribution and assembly for Europe
FlexQube has decided to bring home the assembly and distribution from the current subcontractors in Sweden. The relocation took place during the first weeks of September and operations in the new premises in Västra Frölunda are now in operation. The first deliveries under their control are scheduled for September 20, 2019.
The head office, which is currently located in central Gothenburg, will also move into the premises at the end of 2019. Up until now, distribution and assembly had been via contract suppliers in Värmland and Småland. Due to the strong growth in recent years, FlexQube also had a smaller short-term leased storage space in Arvika. The development of automation solutions in project 4.0, where eQart® is the first product launch, has also taken place in premises in Mölndal, just south of Gothenburg.
This means that FlexQube’s operations in Sweden are consolidated from four locations to one. The move is expected to improve the gross margin for European operations by approximately five percentage points. Costs for relocation and start-up are estimated to amount to approximately SEK 0.5 million and are charged to earnings in the third and fourth quarters.
“We have outgrown our office space in central Gothenburg, and at the same time, the business has changed focus as the development of our automated solutions has become more compelling. All in all, this means that the benefits of co-locating the head office with development, distribution, and assembly are great. We see there is potential to increase efficiency by insourcing assembly and distribution, partly by lowering the costs of assembly and distribution. But also by further improving our quality as product development and our customer designers get closer to the products ”, comments Anders Fogelberg, CEO FlexQube AB (publ).
FlexQube offers a unique and patented concept for the design and manufacture of robust, modular, and flexible carts and racks. The company has production in Sweden and the US with associated distribution in Europe and North America, including Mexico. On December 14, 2017, the company was listed on Nasdaq First North in Sweden.
FlexQube has some of the world’s largest manufacturers of automotive, energy, defense, aviation, appliances and construction machinery among its customers. Some examples are Volvo Cars, Autoliv, Scania, Whirlpool, Eberspächer, and Oshkosh.
For more information, contact the CEO, Anders Fogelberg
+46 702 86 06 74
The share (FLEXQ) is traded on Nasdaq First North. FNCA Sweden AB, telephone +46 8-528 00 399, is the Company’s Certified Adviser. Read more at www.flexqube.com.