Homag Group has announced the closure of two production sites with the loss of 180 jobs, as part of restructuring.
The closures affect subsidiary Friz Kaschiertechnik in Weinsberg, and the Löhne site, where Torwegge and the service branch of Weeke is located.
“Friz and Torwegge have been making losses for several years,” said Homag. “We have intensively examined other avenues, but have been unable to find a feasible alternative.”
Once the full restructuring programme is completed, the management board expects to generate a sustained improvement in earnings ranging between €6m-8m each year from 2013.
“Backed by this long-term improvement in earnings, the Homag Group will be able to make further investments in growth through innovation and expansion into new markets,” it said.
The strategically important product segments of the companies Friz and Torwegge are to be expanded at Homag.
“The machines and production lines that Friz and Torwegge have manufactured until now are subject to massive fluctuations in demand, which means that it is only possible to produce them viably within a larger portfolio of products,” the company said.
Homag said the newly developed products of Butfering Schleiftechnik GmbH have proven successful on the market and lent a solid foundation to the Homag Group’s continued expansion strategy in the field of surfacing technology.
“The overarching aim of our future group structure is to further improve the efficiency of our development and production by concentrating our operations at fewer sites, a move that will allow us to safeguard jobs and the Group’s future in general.”
