Neways to end NEK production; 120 staff affected

Neways has evaluated various options and given the current situation and facts sees no other alternative than to terminate NEK’s production activities. Rebuilding the facility and another relocation of the production activities on behalf of clients would entail a multitude of undesirable financial and operational complications. In order to guarantee continuity for clients, all of NEK’s production activities were relocated to other Neways operating companies after the fire. The entire relocation process went according to plan. At this point, the production processes for most clients are running smoothly. Various clients have since indicated they do not wish to see their production activities relocated again. Some clients are still affected by the fact that Neways is not always able to obtain specific components, which were lost in the fire, from its suppliers on time. Consequently, the (complete) delivery of some orders has been delayed. Over the next few weeks, Neways will continue to focus on resolving these issues as quickly as possible. Neways will be conducting talks with the works council on the consequences for the approximately120 employees in Kassel. Neways will among others be looking to help staff assessing potential alternative employment opportunities both within and outside the Neways group. Neways is insured for the damage resulting from the fire and does not on balance expect this, or the related intention to end production activities at NEK, to have a negative impact on the company’s results. Discussions with the insurer regarding the settlement of the damage are constructive.