Last week, the district court in Solna, Sweden, formally approved the application from optical disc tool maker M2 Engineering AB to exit the period of re-structuring that began in April 2007.

During the 10 months of the re-structuring the company has taken measures to reduce the fixed operating costs and to streamline the organization “to a level that reflects the reality of the market for optical media production equipment.”

M2 Engineering says the re-structuring has also allowed for significant debt reduction and together with the new investment that was secured at the end of 2007, the balance sheet will be strengthened by approximately $20 million. “This will enable further development in the core business of optical media equipment and the continued diversification into the business sectors of precision plastic components and photovoltaics.”

Carl Langenskiold, President and CEO, comments “The last 12 months have been a difficult period for the company but we are confident that the actions that we have taken were correct given the slowdown in demand for optical disc equipment. We are now a much healthier company and expect to strengthen our position in the optical disc market […] Our production facility in Thailand is now well established for the cost-effective manufacturing of the complete product range with the highest level of workmanship and quality.”

Story filed 27.02.08