Brussels, 26/08/2010 (Agence Europe) - On 17 August, the European Commission adopted a proposal for €8.89 million to be granted to help engineering sector workers who have been made redundant in Denmark. The aid from the European Globalisation Adjustment Fund (EGF) will help 70% of the workers, 1,010 in total, paid off by the Danfoss group from its manufacturing division. According to information provided by Denmark, Danfoss' adjusted net sales for the first nine months fell by 17% compared with the previous year and the company had made heavy losses. In the third quarter of 2008, Sauer Danfoss sales plummeted by 52% in Europe, 48% in America and 23% in the Asia-Pacific region. The reduction in production resulting from the economic slowdown exacerbated an already difficult situation for companies in the engineering sector, the Commission noted. Allocation of the aid still has to be approved by the Council and the European Parliament.
Elsewhere, at the start of August, the Commission adopted a proposal to use the EGF to help Denmark once again, after 198 workers lost their jobs at Linak A/S. Following Council and European Parliament approval, aid totalling €1.213 million will be allocated to help 139 former workers find new jobs. (L.C./transl.rt)