Zumtobel close in Austira; jobs losses

Production is expected to be closed down step by step by November 2019. This "economically necessary reorganisation will primarily affect production with roughly 90 employees", a press release states. The reduction of staff in production will start in March 2019. The research & development facilities in Jennersdorf with roughly 30 jobs will be maintained as the group-wide LED competence centre. “Closing down production and adjusting the number of employees at the Tridonic plant in Jennersdorf is a painful but urgently necessary part of the measures designed to get our company back on track,” says Thomas Erath, act. CEO Tridonic, and adds, “we have not achieved a competitive cost base yet. Therefore, we will continue to push measures to strengthen our competitiveness in all areas throughout the Group. Because a healthy basis is the only way to secure as many jobs as possible throughout the Group in the long term.” Alexander Tessner, Head of Human Resources Zumtobel Group, comments: “With the early announcement of the planned closure of Tridonic Jennersdorf in just under a year, we now have enough time to develop individual solutions for our employees. At the same time we are aware that we are confronting those affected with major personal challenges with this economically necessary reorganisation. Therefore, our primary focus is now on ensuring that the staff reduction is socially balanced, and alleviating social hardship individually.” The LED modules produced at the Jennersdorf plant have long been subject to enormous price pressure and continuously declining margins. As a result, the production site can no longer be operated in an economically viable manner, the company states. With Tridonic, the Zumtobel Group is one of the few manufacturers still producing LED modules in Western Europe. Most competitors have already shifted production to Asia and Eastern Europe. The Zumtobel Group plant in Niš, Serbia, which was opened in September of this year, will manufacture large quantities of LED modules in addition to LED drivers in the future. Technologically advanced products such as ‘Tunable White’ components for variable colour temperature control from warm to cool white light will be produced at the components plant (Tridonic) in Dornbirn in the future. This plant specialises in the production of high-end electronic devices for the control of LED light sources for the IoT area. The R&D facilities in Jennersdorf, the Zumtobel Group’s competence centre for LED technology with about 30 jobs, will not be affected by the closure. In the past years, the know-how in the area of LED technology has been significantly expanded. This expertise will be developed further in the future.