The initial results of the industrial and functional restructuring implemented in 2014 demonstrate this was the right strategy for the Group's transformation. However, the efforts already made prove insufficient to put Nexans on a more competitive footing for the long term. Given this context, a study for a new savings project in Europe has been launched. The document detailing the reorganization project for some subsidiaries in Europe was presented today to the employee representative bodies.
This document will be used as the basis for an information and consultation procedure that is now under way. Within this project, aimed to respond to market challenges and to protect Nexans' competitiveness, four major improvement drivers have been identified: optimize the structure of the Group's support functions adapt regional structures reduce the fixed costs of Market Lines in Europe reduce production capacity for the Utilities Market Line in Europe. This project may involve all European countries and in particular France, Norway and Germany. The adjustments would result in 478 positions cuts and the creation of 46 new positions in Europe.
Nexans intends on minimizing any social consequences that may arise from the project, taking into account the specific local context and social regulation in each Country concerned. The Group's wish is that this reorganization project be approached in close cooperation with the employee representatives and social partners both at European level and in each of the subsidiaries concerned, identifying the best possible solutions for redeploying employees and providing individualized support for those employees whose positions may be affected by the project.