Strategic Operations Restructuring for a Leading Industrial Components Manufacturer
A global leader in industrial components partnered with EFESO to address major operational, financial, and strategic challenges at one of its key Western European sites.
Our Client
A global industrial components manufacturer with annual revenues in the multi-billion-euro range, operating a complex manufacturing footprint across several countries.
The company employs several thousand people worldwide and serves both traditional and emerging markets through a highly diversified product portfolio.
The Challenge
The engagement began as an operational improvement initiative but evolved into a full-scale restructuring as several deep-rooted challenges emerged:
- Complex stakeholder landscape: The entity operated in a highly unionized environment with strong regional interests and resistance to change.
- Unreliable financial reporting: Past misconduct had compromised the accuracy of historical financial and operational data, making decision-making difficult.
- Leadership instability: Frequent management changes required multiple alignment loops with new executives.
- Strategic dilemma: The coexistence of outdated and newly invested assets created uncertainty on whether to reinvest, write off, or divest—posing a major capital allocation challenge.
Real Results Achieved Together
Despite a highly complex environment, EFESO enabled the client to achieve full transparency on performance, costs, and options—leading to a clear, defensible strategic decision that safeguarded long-term value.
- Multi-million-euro annual cash drain identified and eliminated through closure.
- Three strategic scenarios developed (continuation, reinvestment, relocation/closure).
- Comprehensive roadmap for tooling transfer, labor negotiations, and communication plans.
- Fact-based foundations for future group-wide performance management and restructuring initiatives.
Transformation Impact
- Delivered an irrefutable business case comparing all strategic alternatives.
- Enabled the executive committee and board to make a transparent, data-driven decision.
- Provided a structured roadmap for site closure and asset sale, minimizing operational and social risks.
- Facilitated constructive labor negotiations through robust fact-based preparation.
- Created frameworks that informed future group-wide restructuring policy and governance.
Our Approach
EFESO deployed a rigorous, fact-based methodology combining operational diagnostics, stakeholder engagement, and scenario modeling to guide a sensitive restructuring process.
- Comprehensive Diagnostics and Data Reconstruction
- Rebuilt credible financials independent from legacy reports to establish a solid analytical base.
- Conducted on-site operational and organizational assessments to reveal true performance levels.
- Stakeholder Alignment and Scenario Modeling
- Engaged extensively with management and unions to enhance transparency and trust.
- Developed several quantified strategic scenarios (continuation, reinvestment, relocation, closure) detailing CapEx, OpEx, and social impacts.
- Product and Customer Management Actions
- Used reliable cost and profitability data to prune unprofitable products.
- Leveraged the new fact base to renegotiate customer prices, generating a much-needed cash infusion.
- Structured Communication and Execution Roadmap
- Documented every phase of analysis and recommendation.
- Delivered a detailed transition plan including workforce, tooling transfer, and compliance milestones.
- Enabled a seamless handover to the specialist consultancy managing social and legal closure aspects.
Facing Similar Operational or Restructuring Challenges?
- Managing sites with complex stakeholder environments and uncertain financial visibility.
- Struggling to evaluate strategic options such as reinvestment, relocation, or closure.
- Needing fact-based, transparent decision frameworks to support executive and board alignment.