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© ggp Electronics PCB | July 31, 2019

GGP Electronics GmbH to close in November 2019

On July 29, 2019, the shareholders of European Electronics Systems took the decision to discontinue the operation of its PCB manufacturing subsidiary GGP Electronics GmbH in Osterode (Germany).

Current planning estimates the closure and discontinuation of in-house production at the end of November 2019. This date is subject to consultation with the works council in Osterode as 95 employees (including part-time workers and trainees) will be affected by the decision. EES acquired GGP Electronics GmbH out of insolvency in 2016. Over the past few years, many projects were taken to turn the location into a viable business. Ultimately however, EES had to accept, challenged also by the product technology mix (mostly mainly Standard PTH and Multilayer PCB) and overall market downturn in 2019, that these measures were unsuccessful. Cost reduction measures as for example short-time working since December 2018 did not pay off. EES senior management is convinced that all possible measures were taken to continue operations at Osterode, but that none of them ultimately worked. “EES' shareholders are committed to continuing successful operations at its remaining two subsidiaries: Schoeller Electronics Systems GmbH and Hans Brockstedt GmbH. Each of these businesses use sophisticated PCB technology to supply its market leading customers and will continue acting as a reliable partner in complex connection solutions around the printed circuit boards”, reads a statement of Lawrence W. Schwoeri, CEO of EES. “EES also values it relationships with each of its employees and all the key suppliers who continue to assist our management team in growing the company.” In a statement to Evertiq, EES expressly confirmed that the two operating subsidiary companies Schoeller Electronics Systems GmbH (in Wetter) and Hans Brockstedt GmbH (in Kiel; both Germany) are not affected by this measure. Those two locations will continue production with focus on high performance and mission critical PCBs. Customers have been notified of the decision to discontinue operations at GGP Electronics GmbH throughout the day (July 30, 2019). “We expect customers to evaluate on a case by case basis the future sourcing strategy for the discontinued product”, the company statement to Evertiq continues.
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August 21 2019 3:49 pm V14.1.4-2