CEAG AG: Capacity adjustments in Ostbevern/Germany
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| 12/12/2002 |
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| CEAG AG: Capacity adjustments in Ostbevern/Germany |
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Ostbevern/Bad Homburg v.d. Hoehe, December 12, 2002.
In the spring of 2002, CEAG started its strategic restructuring by splitting the operative business into the business units FRIWO Mobile Power (FMP) and FRIWO Power Solutions (FPS). High-volume business, like chargers for mobile phones, which represents 77 percent of the company's turnover, is gathered in the business unit FMP. From December 1, 2002, onward, this unit will be acting as a sovereign legal company.
By shifting the production to the Chinese FRIWO factories, this business line has returned to profit within a short period of time.
FRIWO Power Solutions (FPS) manufactures power supplies and chargers for fragmented markets of the IT and communication technology, power tools, industrial applications and for medical technology. These markets, especially the German and European markets – are shaped by a strong dependency on the economic situation and demand. In spite of a 30% declining market, FPS was able to maintain its hold on the market even with a minus of ten percent, but it distinctly missed its turnover and sales objectives.
This FPS development led to a massively low factory loading in Germany. Consequently, adjustments by means of headcount reduction in production and production-related areas are mandatory. 72 employees will be affected which reduces the overall headcount in Ostbevern to 240 people.
The company will offer the employees to outplace them to a transfer company. Depreciations of production assets included, additional one time costs of approx. 2.8 mill. EUR will arise in 2002.
As soon as this measure is terminated, the business unit FPS, legally acting on its own within the FRIWO Geraetebau GmbH after December 1, 2002, will become competitive again. Starting January 1, 2003, FRIWO Geraetebau GmbH will be joined by a new managing director, Mr. Felix Zimmermann (50) with worldwide responsibility for the FPS business. Due to his many years of work in the power supply industry, he not only has extensive experience in this sector but also excellent knowledge of business management.
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