12 million Swiss Franc savings scheme: Arbonia closes plant and lays off up to 600 people

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Arbonia is being destroyed. As the company announced on Thursday, the construction supplier plans to close the factory and downsize to 600 employees by June 2024. With 6,400 employees, this means that every tenth of a job is eliminated. However, as a spokesperson said when asked by the AWP news agency, things in Switzerland were not affected.

The Thurgau-based company is suffering from a decline in construction activity in its main markets. Guidance for the full year is now suspended after a drop in sales. Now the company wants to save costs with deep cuts.

These measures should result in a one-off cost of CHF 15 million in fiscal 2023. Arbonia hopes to achieve net savings of CHF 10 to 12 million annually. In addition to dismissals, temporary and fixed-term employment of workers should be terminated and working hours should be reduced throughout the group. According to the spokesperson, the main thing is to cut down on expensive night shifts.

transport of production

Among other things, the production of designer radiators will be moved from Dilsen in Belgium to Stríbro in the Czech Republic. From this step alone, Arbonia expects annual savings of 4 million francs from the second half of 2024.

As a result of the displacement, as many as 70 jobs will be lost in Belgium by the end of the second quarter of 2024 at the latest. Arbonia writes that discussions have begun with responsible employee representatives for the planned action.

Don’t you dare guess

In the first half of the year, Arbonia’s sales fell 10 percent to about 570 million francs. The number of building permits decreased due to historically high construction costs and rising interest rates. Arbonia no longer dares to make a forecast for the year as a whole. However, the medium-term targets for 2026 have been confirmed.

Things are going better in Switzerland for Arbonia than in Germany and Eastern Europe. Here in eastern Switzerland, after previous rounds of relocation, it still operates two production plants, one for special doors and the other for showers. “Switzerland is almost isolated from other markets,” a spokesperson for Arbonia said. Interest rates are not that high here. While special products continue to be in demand, standard products for radiators, doors and showers present more problems. (SDA/lui)

Source :Blick