Zurich, Switzerland, October 03, 2017 – Gurit (SIX Swiss Exchange: GUR) today announced that it will transfer its UK prepreg business to its Spanish prepreg production facility by summer 2018.
- Staffing reduction of around 70 FTE in UK
- Completion of transfer by summer 2018
- Restructuring cost of CHF 3.1 million in 2017 and CHF 0.8 million in 2018
Following the technology change from the use of pre-impregnated fibres (prepregs) to infusion technology for the production of wind blades in the global wind energy industry over the past 10 years, Gurit faced non-utilisation in China and Canada and underutilization of its prepreg production capacity in Europe in recent years. In this context, the prepreg plants in China and Canada were closed in earlier years. In Europe, the decline of the wind energy prepreg market combined with the overall demand for marine, industrial and automotive prepreg has now reached a level which suggests consolidation in one well-utilised site.
The manufacturing of Formulated Products and the UK-based automotive components Technology Centre will remain unaffected from the aforementioned changes.
Gurit will continue to maintain the technology activity for its prepreg and formulated business in the UK and continue to invest in this Tech Centre in order to retain the Company`s leading technology position, know-how, customer proximity and technical support capability.
Gurit estimates that the restructuring and transfer cost will result in one-off costs of approximately CHF 3.9 million of which CHF 3.1 million will be effective in the 2017 fiscal year and the remainder in 2018.