Cicor to stop thin-film production at German site
Cicor is consolidating production at its site in Wangs, Switzerland. Employees at Ulm, Germany, will be offered the opportunity to relocate to the Wangs site or work in a sales role in the Ulm region.
Cicor Group has decided to discontinue thin-film production at the Ulm site in Germany by the end of June 2025 and to concentrate production at the existing site in Wangs, Switzerland, the company said.
The employment relationships of the approximately 30 people affected by this decision will be terminated as of June 30, 2025. All employees will be offered the opportunity to relocate to the Wangs site or, in individual cases, to work in a sales role in the Ulm region, the company said in a media release.
Reinhardt Microtech AG acquired the thin-film technology business in Ulm in 1998 and has been operating it as Reinhardt Microtech GmbH since then. The company has been part of the Cicor Group since 2007 and is part of the Advanced Substrates Division.
Cicor, a major player in the hybrid circuit business, is strengthening its activities by consolidating production at its site in Wangs, the company said. This will enable the company to reduce complexity, increase flexibility and strengthen risk management, it said.
Economic factors also indicate that it no longer makes sense to continue production in Ulm, it said.
From a technological point of view, Cicor’s thin-film sites in Wangs and Ulm are capable of producing identical components. Reinhardt Microtech GmbH will continue to operate as a sales and competence center in the Ulm area, ensuring continued service to long-standing customers in the German market.
The restructuring will have a six-digit CHF impact on Cicor Group’s EBITDA in the current year and will lead to a significant improvement in the results of the business unit and the Advanced Substrates Division once the relocation is complete. The guidance for 2024 and the mid-term targets will not be affected by this measure.
The company’s quarterly sales increased by 26.3% to CHF 120.4 million (EUR 128.2 million). The order intake of CHF 121.1 million (EUR 128.9 million) corresponds to a book-to-bill rate of 1.01.
Its organic sales growth in the third quarter was -1.5%. In the European market for EMS, which shrank by around 10% in the first half of 2024 due to ongoing destocking and generally weak demand, Cicor was able to gain market share again.
Last week Cicor said it continues to expect sales growth to reach CHF 470-510 million (EUR 500-543 million) and EBITDA to reach CHF 50-60 million (EUR 53.2-63.8 million) for the full year 2024.
