Arbonia further improves competitiveness by consolidating design radiator production
July 20, 2023 at 01:02 am EDT
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Arbonia AG / Key word(s): Miscellaneous
Arbonia further improves competitiveness by consolidating design radiator production
20-Jul-2023 / 07:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this announcement.
Arbon, 20 July 2023 – The Heating Ventilation and Air Conditioning (HVAC) Division of Arbonia is further improving its competitiveness with the planned relocation of its design radiator manufacturing volume. As part of its strategy of being a best-in-class radiator supplier, the planned relocation of manufacturing and painting from Dilsen (BE) to the competence centre in Stříbro (CZ) will increase capacity utilisation and productivity as well as further centralise know-how. Arbonia expects one-off costs of around CHF 10 million to be incurred in the second half of 2023 due to the closure and relocation of production. In return, Arbonia expects annual savings of around CHF 4 million from the second half of 2024.
The HVAC Division intends to relocate the manufacturing capacities for design radiators from the Vasco production site in Dilsen (BE) to its highly automated production plant in Stříbro (CZ) by the end of the second quarter of 2024 at the latest. This will sustainably further increase its competitiveness by concentrating competencies and volumes. This measure does not affect the research and development or manufacturing of ventilation products and underfloor heating systems, nor does it affect logistics processes for Benelux in Dilsen (BE).
The intended production relocation and the resulting closure of the radiator manufacturing could result in up to 70 jobs being cut at the Dilsen (BE) site by the end of the second quarter of 2024. For this planned measure, discussions were initiated with the responsible employee representatives, including the preparation of a social compensation plan and the definition of effective support measures for the affected employees.
This will further optimise the market development of the HVAC Division. In the future, customers will benefit from an even more attractive product portfolio, the highest quality and best-in-class logistics services. Belgian customers will continue to be served by the sales organisation based in Dilsen (BE), and the area of research and development, the production of underfloor heating systems and ventilation products as well as the logistics centre for Benelux will still remain at the Dilsen (BE) site.
Steel panel radiator manufacturing for the European markets will continue to be concentrated at the competence centre in Plattling (D), while the manufacturing of design radiators will be mainly bundled in Stříbro (CZ) and Legnica (PL) in the future.
Arbonia expects one-off costs of around CHF 10 million to be incurred in the second half of 2023 due to the closure and relocation of production. In return, Arbonia expects annual savings of around CHF 4 million from the second half of 2024.
Contact
Fabienne Zürcher
Head Corporate Communications & Investor Relations
T +41 71 447 45 54 fabienne.zuercher@arbonia.com
Arbonia AG, formerly AFG Arbonia Forster Holding AG, is a Switzerland-based focused building components supplier with two divisions active in indoor climate (heating, ventilation and air conditioning) and interior doors made of wood and glass. The Group is active worldwide with its own distribution companies as well as offices and partners in more than 70 countries. Its main production sites are located in Switzerland, Germany, the Czech Republic, Poland, Serbia, Russia, Italy, Belgium, and the Netherlands.
ARBONIA AG 
