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Shareholders dissolve Raufoss

Industrial concern Raufoss ASA ceased to exist on Monday, when shareholders at an extraordinary meeting approved its dissolution.

Industrial concern Raufoss ASA ceased to exist on Monday, when shareholders at an extraordinary meeting approved its dissolution. Raufoss' chairman still hopes new owners will take over various arms of the firm.

Karl Glad says new ownership is the only way to preserve around 600 jobs at the firm based just south of Gjoevik in south central Norway.

"I'm optimistic with regards to the possibilities that exist to preserve various activities," Glad told news bureau NTB. "This will be exciting. I'm not sure we will succeed, but I think we can."

At the same time, Glad admitted it was a tough day for the venerable company. "This is an old, distinguished firm that's been dissolved," he said. "The worst part is that we haven't been able to take care of the shareholders' money.

"If we succeed in finding new owners, we'll at least have something to look forward to."

The company was taken off the trading list at the Oslo Stock Exchange when the dissolution vote passed.

Raufoss has struggled with heavy losses, not least in connection with construction of new factories to manfacture wheel parts for General Motors. "The investment was too big, and the market wasn't as big as we had budgeted for," said Glad.

Raufoss ended up with negative equity last summer.