Harju Elekter
Suspension of the activities of Swedish subsidiary Harju Elekter AB

Harju Elekter 

28.02.2014 07:03

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Estonia, 2014-02-28 07:03 CET (GLOBE NEWSWIRE) -- According to the 27 February
2014 decision of the Supervisory board of AS Harju Elekter to reorganise the
Group's Sweden-oriented activities, as of 1 April 2014, the activities of
Swedish subsidiary Harju Elekter AB will be suspended for an unspecified term. 

Founded in 2010, subsidiary Harju Elekter AB has acquired a fully functional
client base during these three years. According to the Group's development
strategy, Scandinavia and Sweden continue to be important target markets, but
the reason behind this step was the inefficient and cost-intensive business
model that was implemented between 2011 and 2013. While sales volumes continued
to increase year by year, the relatively steep costs did not make it possible
to reach the desired business results. 

As at 31.12.2013, Harju Elekter AB's balance sheet total in the Group's assets
was 0.25%, making up 184,000 euros (31.12.2012: 342, 000 euros). The company's
sales revenue in 2013 was 703,000 euros (2012: 532,000 euros), making up 1.4%
and 1.0% of the consolidated sales revenue, respectively. The financial year
resulted in a loss of 190,000 euros (2012: 140,000 euros). 

After the reorganisation, responsibility for the Group's Sweden-oriented
business activities and the local clients will be taken over by the sales and
development teams of Harju Elekter's subsidiary AS Harju Elekter
Elektrotehnika, along with partner agents based in Sweden. All unfinished
projects will be carried over to AS Harju Elekter Elektrotehnika, who will
continue with active sales and participation in tenders. After the
reorganisation, the main focus will be put on efficient development and sales. 

AS Harju Elekter is a leading manufacturer of MV/LV electrical equipment and
automation solutions in the Baltic countries and well-known producer in
Scandinavia. Harju Elekter Group includes the manufacturers of electrical
equipment in Estonia, Finland and Lithuania: AS Harju Elekter Elektrotehnika
(100%), Satmatic Oy (100%) and Rifas UAB (63%), as well as the manufacturer of
telecommunications products AS Harju Elekter Teletehnika (100%), Harju Elekter
also has a related company AS Draka Keila Cables (34%) as well as financial
investments in the Latvian seller of electrical equipment SIA Energokomplekss
(14%) and the Finnish company PKC Group Oyj (5%). 

Andres Allikmäe
CEO/Managing director
Tel: +372 674 7400

Additional information: Andres Allikmäe, Managing directorand Endel Palla,
Chairman of the Supervisory Board (tel: +372 674 7449). 

Prepared by:
Moonika Vetevool
Corporate communication and investor relations manager
Tel: +372 671 2761
News Source: NASDAQ OMX



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Language:     English
Company:      Harju Elekter
              
               
              Estonia
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         EE3100004250
WKN:          
 
End of Announcement                             DGAP News-Service
 
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