Accell Group will merge bike production for its Batavus and Sparta brands, the company announced this week. Production will consolidate under one roof at the company's headquarters in Heerenveen. Accell's Juncker Bike Parts will be moved into the warehouse in Apeldoorn after Sparta vacates following the consolidation.
Accell also plans to base the storage and shipment of service and warranty parts for Batavus, Koga and Sparta in the warehouse in Apeldoorn.
Accell Group said the move was made in an effort to strengthen the company amidst mounting challenges in the Dutch market, examining which activities could be merged in order to improve efficiency. Both Batavus and Sparta are sold only in Europe.
"The further decline of the Dutch bicycle market forces us to make a more drastic adjustment with regard to the organization in the Netherlands," said Accell Group CEO René Takens. "Combining the production activities of Batavus and Sparta enables us to achieve an acceptable capacity utilization. Unfortunately this means we need to part from several loyal employees and call on the flexibility of the rest of the staff for the changes to work."
The reorganization will result in a loss of about 60 jobs. Accell Group will implement a guided 'from work to work' program for the affected employees. A number of staff members will also be transferred to different locations.
These changes in its production facilities in the Netherlands, which employ 595, will be conducted in phases from August 2013 through December 2014, and result in savings upwards of 2 to 3 million euros annually starting in 2014.
Accell Group and its subsidiaries employ 2,776 people worldwide in 18 countries. The Dutch conglomerate operates production facilities in the Netherlands, Germany, France, Hungary, Turkey and Canada. Last year Accell Group's revenue topped 772.5 million euros.
