In the course of its ongoing restructuring programme and in response to growing global competition, the Zumtobel Group has decided to gradually adjust the production volume and the number of employees at the components plant (Tridonic) in Jennersdorf, Austria. 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. 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. All necessary personnel measures will be implemented in the most socially responsible manner possible.
"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."
Socially responsible, individual solutions for employees
Production will be shut down gradually over a period of roughly one year. The management of the Zumtobel Group strives to ensure that the economically inevitable reduction of the number of employees is as socially responsible as possible, and is working on a set of measures providing for a voluntary severance package as well as the establishment of a work foundation. The task of the work foundation will be to offer targeted training and further education in order to support a fast reintegration into the labour market.
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."
Product transfer to Nis and Dornbirn
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. 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.
In order to remain competitive in this cutthroat market it is necessary to concentrate the production of standard LED modules at a production facility with a competitive cost base and sufficient capacity. Therefore the Zumtobel Group plant in Nis, 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.
Research and development facilities in Jennersdorf will be maintained
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.
Dornbirn as the Group's headquarters and group-wide research and development centre will continue to be the heart and hub of innovation within the Zumtobel Group.
Zumtobel Group AG
Höchster Straße 8
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