NetComposites

Connecting you to the composites industry

Advertisement

Exel Composites to Close Its Production Facility in Germany

  • Friday, 1st February 2019
  • 0 comments
  • Reading time: about 2 minutes

Exel Composites’ subsidiary Exel has agreed with the local works council, Betriebsrat, to close production in the Voerde manufacturing facility in Germany by 30 April 2019.

The Voerde facility is Exel Composites’ smallest unit where composite profiles mainly to the telecommunications industry have been produced. As volumes have declined due to the continued challenging market situation of the telecommunications industry, the utilisation level of the Voerde facility has been low.

During February – April, production will be gradually transferred to other Exel Composites units to ensure an orderly transition with minimal impact on customers. As a result of closing production in Voerde, the employment of 23 permanent employees will be terminated. The company will offer them support in finding new employment.

The closure will result in annual cost savings of approximately EUR 1.0 million from 2020 onwards. According to preliminary estimations, the closure will result in a one-time cash cost of EUR 1.2 million that will be recorded in the first quarter of 2019. Furthermore, related to the annual impairment testing, an EUR 1.3 million write-off to goodwill and another EUR 0.3 million write-off to other balance sheet items will be recorded in the annual accounts of 2018.

The closing of production in Germany falls under the Group-wide cost reduction program initiated in 2018. In addition to optimising Exel Composites’ manufacturing footprint in Europe, the cost reduction program consists of improving the profitability and cost efficiency of the acquired DSC business as well as further synergy savings between the company’s two manufacturing units in China, among other things. The annual savings target of the program is EUR 3 million, expected to be fully effective in 2020.


For more information visit:


Share this article


Categories


Related News


Comments (0)

Sign in or create an account to join in the discussion.

Leave your comment

Advertisement

Upcoming Events

Advertisement

Advertisement

Advertisement

Follow us
Subscribe to our email newsletter

Subscribe to receive our weekly round-up of all the industry's latest news, jobs, events and more!

We'll always keep your personal details secure and will never share them with third parties for marketing purposes. You can unsubscribe at any time. For further details on how we may use your data, please visit our Privacy Policy.