"The Schaffner Group, listed on the Swiss Stock Exchange, is relocating its European production activities for EMC (Electro-Magnetic Compatibility) components and standard power quality products to Hungary.The focus of activities at the Luterbach headquarters of the Schaffner Group will be on strategic management, the global innovation centre, and other tasks within Schaffner's global sales organisation, the company said in a statement on 17 April. Schaffner Jacke in Büren, Germany, will continue to manufacture customer-specific power quality solutions.
“European volume production is being concentrated in the modern Schaffner plant in Kecskemét, Hungary, as part of a general reorganization of the Schaffner Group, a move that will support the objectives of the ongoing operational excellence program to boost profitability," the company added.
The new plant, which goes into operation in mid-May 2008, will substantially expand Schaffner's Kecskemét production capacities and “help to significantly optimise processes while increasing production efficiency".
As a consequence of the reorganization, the headcount in Luterbach will be reduced to 115 from 148 employees by 30 November this year, which staff cut will partly be achieved by not extending temporary employment contracts as well as by natural attrition. Management expect that at most 20 employment contracts will have to be terminated in conjunction with the relocation.
Around 30 jobs from Büren, Germany, will be relocated to Hungary. The reduction will be achieved by terminating personnel leasing agreements and temporary employment agreements that are due to expire soon.
The extraordinary costs of CHF 0.5 million associated with these staff cuts will be incurred during the second six months of the 2007/2008 fiscal year.
The development allowed to add 50-100 people to the staff at the Kecskemét plant, which now employs 200-250 workers, László Mócza, managing director of Schaffner EMV Hungary Kft. told local business daily Világgazdaság on Tuesday.
Mócza said the parent company also has plans to move technological development for production to Hungary. The entire EMC component and power product output of the Kecskemét unit is slated for export, primarily to Western Europe and the United States.
Schaffner also has production capacities in China and Thailand. They said Hungary was chosen this time because its economic and political environment is suitable for Schaffner to ensure growth. Mócza noted that the parent company also took into consideration than wages in Hungary are almost the lowest in the region, the paper added."
Source: Portfolio Online Financial Journal
23.04.2008