Gränichen/Switzerland, 29 May 2018 – The Zehnder Group (SIX: ZEHN), a leading international provider of complete solutions for a healthy indoor climate, is planning to further optimise its radiator production facilities in Europe. The goal is to sustainably improve the cost structures as well as the unsatisfactory production capacity. To do this, some of its production volume will be moved from Switzerland to France, which will result in the loss of 40 jobs at the Gränichen (CH) site. The corresponding consultation procedure is currently under way.
Relocation of production within the Zehnder Group
Specifically, the Zehnder Group plans to move the production of products for the British market from the plant in Gränichen (CH) to Vaux-Andigny (FR). The negative market development for made-to-measure radiators in Europe and the continued pressure on prices and margins have made this structural adjustment a necessity. The move will affect around a third of the production volume of the plant in Gränichen and will entail the loss of 40 jobs.
The Zehnder Group produces radiators at five sites in Europe. In order to improve cost structures as well as the unsatisfactory utilisation of production capacity, the Group Executive Committee considered various options and scenarios for structural adjustments at its plants in Switzerland, France and Poland. As a result, they decided to streamline the product portfolio further, eliminate production overlaps and gradually reduce the Group-wide production costs by means of economisation and relocation of production.
Consultation procedure under way
In light of the plans to cut 40 jobs at the Gränichen site, the consultation procedure was initiated in accordance with the collective labour agreement and discussions have begun with the employee representatives and social partners. “We understand that the intended job cuts will have serious consequences for those affected, their families and the Gränichen site. However, structural adjustments are unavoidable if we want to strengthen the Gränichen site. I personally undertake to ensure that the planned staffing measures are implemented in a fair and socially responsible manner,” said Chairman of the Board of Directors and interim CEO Hans-Peter Zehnder. The job cuts shall largely be completed by the beginning of 2019.
Gränichen site still of central importance as Group headquarters
Alongside around 100 production staff, around 250 other Zehnder Group staff members are employed at the Gränichen site in key Group-wide roles as well as the sales team for Switzerland. The Gränichen site will continue to be of central importance for the Group, both as its headquarters and in terms of its research and development activities. Furthermore, the site will also continue to produce made-to-measure radiators for the Swiss market along with other selected markets.
Positive impact on operating income as of 2019 financial year
The one-off costs in connection with the planned relocation of production are fully covered by existing restructuring provisions. The measures introduced are expected to have a positive impact on the operating income of the Zehnder Group as early as the 2019 financial year.