Organizational changes in PMC Group

In order to further strengthen our organization and increase our market presence, PMC Group is carrying out an organizational change, which will include three new matrix functions as follows:

PMC Group Account

This function will have overall responsibility for the Group's Group Account customers. This type of customer is active on many different geographical markets and places special demands on us as a supplier. At the same time, they represent a major potential for growth. We have gradually introduced this way of working over the past few years and, as it has been highly successful, we wish to intensify this further.

Mikael Lundgren has been appointed as VP for PMC Group Account and will be responsible for this function. Others in the group are Jens Lybecker and Jörgen Ahlstrand. In time, the function will be strengthened further.

PMC Group Procurement

This function has been created in order to further strengthen our common approach to procurement. At the same time, the Strategic Purchasing staff function has been abolished.

Group Procurement will work more actively and directly with the local companies and will have overall responsibility for the Group in all purchasing matters. A very important part of this will be to drive the supplier development process and to develop the purchasing synergies available to a Group of our size.

Ingvar Alm has been appointed as VP for PMC Group Procurement and will be responsible for this function. Others in the group are Peter Johannesson, Jörgen Ahlstrand (part of his time, Asian Products) and the Supplier Development role, for which recruitment is in progress.

PMC Group Production

This function will have overall responsibility for the development and implementation of common production processes within the Group's production units. The aim is to become a world leader in the installation of hydraulic and lubrication systems as well as cutting tools and methods.

The function is under construction and recruitment of the VP of PMC Group Production is in progress.

Other changes

Patrik Olsson new President at PMC Hydraulics AB

Patrik Olsson will be taking over as President at PMC Hydraulics AB. Patrik will also be retaining his President position at PMC Hytech AB. This organizational change will be negotiated with the local trade unions in the usual way before it can be implemented.

The aim is to coordinate the activities of the various companies and to increase PMC Group's total market share in Sweden.

Patrik will also retain responsibility for developing the Group's activities in Poland.

China

Erik Holst and PMC Technology have done a very good job of developing our company in China, PMC Qingdao. Thank you to everyone involved.

In line with the strengthening of local expertise, it is now time for PMC Qingdao to become an operation in its own. At the same time, the Group has high expectations of the development in sales in China, and the target is sales of SEK 400 million in 2014. This will only be brought about by a wholehearted effort.

As well as being responsible for PMC Qingdao, Jesper Pedersen will also be responsible for PMC China. This is a new function that also includes responsibility for local sales and marketing of the PMC Group.

Finally, I would like to wish everyone luck in their new roles.

The new organization applies from 12 March 2012.

Helsingborg, 7 March 2012

Mikael Andersson
CEO and President, PMC Group