Varta introduces short-time work at German facility
"In order to be able to meet the current and future challenges, the Executive Board has launched a comprehensive package of measures to reduce costs", a press release reads.
While capacities for CoinPower cells (TWS) are being scaled back, the company is confident that, once demand picks up again, capacities can be ramped up at short notice. As part of these adjustments, the company has announced the introduction of short-time working hours in the Lithium-Ion CoinPower business on the production site in Nördlingen (Germany).
The new factory construction for the round cell/V4Drive will only be continued once binding customer commitments have been secured, while the operation of the first series production plant will continue as planned. It will provide the cells to fulfil the OEM contract with a premium car manufacturer.
For the 2023 financial year, VARTA AG's Executive Board expects revenue of between EUR 850 and 880 million and anticipates an adjusted EBITDA of EUR 90 and 110 million. This forecast is based on the assumption that the challenging economic situation and existing global crises will continue in 2023, with corresponding negative consequences for costs, supply chains and consumer demand, the release continues.