Product concentration and restructuring, Saurer Hamel AG

PRODUCT CONCENTRATION AND RESTRUCTURING, SAURER HAMEL AG

As of January 1, 2003 all SaurerGroup spinning machine business activities will be concentrated at the German subsidiary Volkmann, Krefeld, for greater utilization of existing synergies within the Group. This also applies to the winding machines so far produced by Saurer Hamel AG in Arbon. All spinning machine business processes will be transferred to Krefeld at the beginning of next year.

In future Saurer Hamel AG will be concentrating on its traditional business of embroidery machine development and production, and on the market launch of a new high-tech product for the textile industry. In this connection some employees will be transferring from the winding machine division to the new product line.

Prices in the embroidery sector have been declining for a long time now, mainly because our markets have largely shifted to Asia and in particular China. To remain competitive in the long term, the respective structures and processes retained in Arbon must be adapted to these changed conditions.
The unavoidable consequence of this is job reductions in Arbon, which will affect 22 of the 240 employees there. While 6 of them will be retiring early, 16 other employees will unfortunately have to leave. In cooperation with the works council, a social support plan will be compiled for the redundant employees.

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Contact:
Dr. Carole Ackermann
Corporate Communications
Phone +41-52-264 09 14
Fax +41-52-264 09 10