Rapid Granulator files for financial restructuring in Sweden

Citing slumping machinery sales, Sweden’s Rapid Granulator AB has filed for financial restructuring.

The Swedish newspaper Värnamo Nyheter first reported that Rapid Granulator, based in the city of Bredaryd, applied for restructuring in the district court in Jönköping. 

The company is expected to post a loss of 20 million Swedish krona (Cdn.$3,070,000) for 2009, the newspaper report continued. With North American headquarters in Franklin, Pa., Rapid Granulator is a sister company to Cranberry, Pa.-based auxiliary equipment supplier Conair Group Inc.

“Rapid AB in Sweden has been affected by the global financial crisis, like many other companies,” said CEO Rolf Gren in a company press release. “However, as the company is mainly supplying granulators to the production industry, the world-wide drop in production has had a severe effect on volume as well as margins. In recent months, we have seen a significant increase in sales and we have taken major steps to reduce cost in terms of travel and staff. Although this has improved our cash situation, unfortunately it was not sufficient. Unlike some of our competitors in other parts of Europe, we are not able to lay off employees on a temporary basis. Therefore, this reconstruction procedure is our only realistic option.”

Gren added that the compay was not declaring bankruptcy. “In fact, we have entered the process both voluntarily and in full cooperation with our Swedish bank partner, Nordea. This reconstruction process will lead to a stronger company that will be able to serve the market even better,” he said.  

In June 2009, Rapid Granulator acquired recycling equipment supplier Avian (Shanghai) Machinery Co. Ltd. of Shanghai. At the time, Rapid Granulator said that the move would boost its presence in recycling equipment and give it a 540,000-square-foot manufacturing plant and a Chinese distribution network.