A major US engineering firm engaged X-PM to shut down their transformer plant in India and shift the equipment to one of their other facilities. However, after the start of the mission, the Client requested help in selling the factory if they could not agree on a Voluntary Retirement Scheme with the employees

Situation

A global third party logistics company based in Singapore was faced with the challenge of each operating division having its own finance department.

The organization’s new MD requested X-PM SEA to build a shared services centre for the Singapore entity. This was a major transformation project for the business. This involved a shift to common systems, process and procedures, including a significant downsizing of finance staff.

Solution

X-PM deployed a dynamic, charismatic, experienced manager to negotiate with unions and local government, deal with an issue relating to industrial contamination, etc. in order to implement the action plan.

X-PM’s Manager explored other options, such as selling the factory rather than shutting it down. Two potential buyers had already been identified, and XPM’s manager engaged with them.

To maintain maximum bargaining power, X-PM’s manager adopted two parallel sets of activities: closing down the facility and negotiating with a buyer to keep the facility open.

Results

The union rejected a generous VRS package, so X-PM’s manager pushed for the decision to accept the buyer’s offer.

X-PM’s Manager engaged with the concerned government department to convince them that it was in their interest to facilitate the transfer of the lease to the buyer so that the factory would continue to operate and provide employment in the region.

X-PM’s Manager led the negotiations with respect to the sale agreement, relying significantly on the legal expertise of the Client’s in-house legal representative and two separate legal firms hired by the Client.