ZURICH, Nov 14 (Reuters) - Switzerland's Sarna Kunststoff Holding AG on Friday announced a restructuring of its automotive parts division, costing more than 400 jobs, and confirmed full-year results would fall short of 2002 levels.
Sarna, which makes polymer chemicals for the construction and car industries, said it would shut three sites. Those closures and the job cuts would lead to one-off charges and provisions of about 22 million Swiss francs ($16.37 million) in 2003.
The firm said it still expected to post a profit and forecast full-year sales of about 850 million, compared with 966 million in 2002. It foresaw growing profits from 2004.
Sarna's first-half net profit fell to 3.9 million francs from 20 million a year earlier with the firm citing lower U.S. car parts sales and launch problems at its European car division.
Sarna had a full-year net profit of 32.1 million francs in 2002.
The firm said it was streamlining costs and capacities to gear up for planned annual growth of about 10 percent in both the construction and car fields from 2006.
Chief Executive Matti Paasila said in a statement: "The reduction of costs with increased capacity use is necessary to counter the price pressure by the OEMs (original equipment manufacturers)."
The restructuring of the automotive business would be completed by the end of 2005. Sarna said it would close two of four sites in Luedenscheid, Germany, costing about 350 jobs.
Labour-intensive assembly operations would move gradually to low-wage European countries with a developing car industry.
A U.S. manufacturing plant in Marysville, Michigan would be closed, costing up to 70 jobs.
Sarna expected annual savings in excess of 20 million francs from 2006 onwards as a result of the measures, which it expects to cost about 27 million francs in total.
Its Sarnafil construction plastics division would target cooperative agreements and acquisitions, with market share in the Chinese market the main focus. The car division would also seek alliances and joint ventures to enter new markets.