Schaffner plans to discontinue production at the Büren site

Media Release

Schaffner plans to discontinue production at the Büren site

Büren to become a competence center for power magnetics solutions

Luterbach/Büren, 1 June 2016 – The Schaffner Group is planning to discontinue production at the Schaffner Deutschland GmbH site in Büren from 31 December 2016. The planned measure will affect around 55 employees in the areas of production, warehouse and testing. Discussions are to be held with the Works Council to agree a social plan for the affected employees. The possibility of setting up a transfer company to temporarily employ the affected employees and support them to find new job opportunities in collaboration with the Employment Agency after their departure from Schaffner Deutschland GmbH is also being examined.

Demand for power magnetics solutions produced by Schaffner Deutschland in Büren has been declining since the start of 2015 and the capacity utilization required to ensure economic viability at the Büren site can no longer be achieved. Furthermore, the unfavorable cost trend means that production costs at the Büren site are now considerably above the market average. These price and cost pressures and increasing overcapacity at Büren have led to operating losses for Schaffner Deutschland GmbH at the Büren site in both the previous fiscal year and the first half of 2015/16.

Schaffner plans to establish the global competence center for power magnetics solutions (transformers, chokes) at the Büren site and, over the long term, invest in the expansion of the research & development and process technology areas. The production of transformers and chokes is to be merged into Schaffner Group's current production sites in China, Hungary and the USA.

Contacts

Alexander Hagemann
Chief Executive Officer
T +41 32 681 66 06
alexander.hagemann@schaffner.com

Kurt Ledermann
Chief Financial Officer
T +41 32 681 66 08
kurt.ledermann@schaffner.com

Financial calendar

8 June 2016

6 December 2016

12 January 2017

Investors' day 2016

Publication of annual report 2015/16 (full-year results)

21st Annual General Meeting

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