Meyer Burger Technology Ltd. (SIX Swiss Exchange: MBTN) announced today to completely discontinue its production site in Zülpich (Germany) by mid-2020. In the future, the systems for optical measuring and testing technologies for industrial manufacturing sold under the Hennecke brand will be produced entirely at Meyer Burger's largest site in Hohenstein-Ernstthal using own resources.
Around 60 employees will be affected by the closure of the Zülpich site. Meyer Burger will offer the affected employees, some of whom have been with the company for many years, socially compatible solutions on the basis of the legal requirements. Meyer Burger expects restructuring costs of approximately CHF 7 million, which will be provided for in 2019 and of which CHF 3 million is expected to affect cashflow in 2020.
Hans Brändle, CEO Meyer Burger commented: "We are proud of our market-leading wafer inspection product and will continue to offer it to demanding customers. However, volumes and margins have fallen sharply in recent months. The decision to close the Zülpich site was therefore not taken lightly. However, Meyer Burger had to take this decisive step as part of the planned adjustment of the business model and as a result of the unattractive margins in the PV standard business, especially in the Chinese market, and after examining various strategic options. Further consolidating our production capacities in Hohenstein-Ernstthal allows us to continue to increase efficiency and strengthen our competitiveness."
Around 60 employees will be affected by the closure of the Zülpich site. Meyer Burger will offer the affected employees, some of whom have been with the company for many years, socially compatible solutions on the basis of the legal requirements. Meyer Burger expects restructuring costs of approximately CHF 7 million, which will be provided for in 2019 and of which CHF 3 million is expected to affect cashflow in 2020.
Hans Brändle, CEO Meyer Burger commented: "We are proud of our market-leading wafer inspection product and will continue to offer it to demanding customers. However, volumes and margins have fallen sharply in recent months. The decision to close the Zülpich site was therefore not taken lightly. However, Meyer Burger had to take this decisive step as part of the planned adjustment of the business model and as a result of the unattractive margins in the PV standard business, especially in the Chinese market, and after examining various strategic options. Further consolidating our production capacities in Hohenstein-Ernstthal allows us to continue to increase efficiency and strengthen our competitiveness."
