Zumtobel Group AG: Order situation requires reorientation of Tridonic components plant in Dornbirn

Dornbirn, Austria (pta023/13.10.2023/14:30 UTC+2)

• Economic impact on orders forces reorganisation to retain production location in Dornbirn
• Tridonic plant in Dornbirn remains under continuing high price pressure
• New orientation for plant as Centre of Production Innovation
• Reduction of workforce at the Dornbirn plant unavoidable
• R&D centre in Dornbirn remains central backbone

The LED products made by the Tridonic plant in Dornbirn remain under extremely high price pressure, and a sharp drop in orders since the beginning of 2023 has had a further negative impact on the company's business. These developments were compounded by a massive, unexpectedly severe decline in revenue for the Components Segment in the first quarter of 2023/24. The components business continues to suffer from a lack of momentum due to high customer stock levels, the economic environment is tense and there are no signs of an end to the market weakness in this business. Under these circumstances, management believes the reorganisation of the production location in Dornbirn is now essential. The reorganisation will affect roughly 100 employees, and all necessary personnel measures will be implemented in a socially responsible manner. Dornbirn will retain its central function as an R&D location for the worldwide Tridonic network: Product and process innovation will continue as important pillars for the reorientation.

"It is a painful step for us to be in a position where we can only continue production at the Dornbirn plant by operating with less personnel in the future. Economic circumstances and the recent massive drop in revenue during the first quarter of 2023/24 force us to implement a near-term reorganisation. Our primary focus will be on organising the personnel reduction as socially compatible as possible, and we are currently working on an extensive social compensation plan", explained Tridonic CEO Hugo Rohner.

New focus of Tridonic plant as the Centre of Production Innovation
The goal is to convert the plant into a Centre of Production Innovation: Plans call for the development of new production processes for all worldwide Tridonic plants at Dornbirn in the future. The innovation centre in Dornbirn will concentrate intensively on robotics and artificial intelligence. A second pillar will involve the design of series production for selected new products and the start-up of this production for subsequent transfer to other plants in the Tridonic network. The third pillar covers the series production of demanding products that are based on a high number of electronic components and software.

In connection with the reorganisation, the company is transferring part of the production to the Serbian plant in Niš, where LED drivers and LED modules have been produced since 2018. In order to succeed in this aggressive market, it is necessary to concentrate the production of standard LED products at a location with a competitive cost basis. Technically demanding items like wireless products or LED light bands will still be produced at the highly automated plant in Dornbirn.

Reorganisation to start soon
This economically necessary reorganisation will affect the production area in the Färbergasse with roughly 100 employees. The first terminations will most likely be announced in November 2023 and will involve 30 to 40 employees. Further terminations will follow in January and April 2024 according to the current stage of planning.

Socially compatible, individual solutions for employees
Tridonic management intends to carry out this economically unavoidable workforce reduction in a socially compatible manner and is currently working on an extensive social plan that includes a voluntary severance programme as well as a work foundation. The work foundation will offer targeted training to support rapid reintegration into the labour market.

Announcement of slight adjustments also for the lighting plant in Dornbirn
As one of the few international companies headquartered in Vorarlberg, the Zumtobel Group has the largest number of its employees – roughly one third of the total workforce – at this location. The Group is the third largest employer in Vorarlberg with approximately 1,570 employees. The headquarters in Dornbirn is the R&D centre and the hub for innovation in the lighting group.

The Zumtobel lighting plant on the Schweizerstrasse in Dornbirn is the main production facility with a clear profile for highly automated production. Volume adjustments and organisational optimisation are now required to improve production capacity utilisation at this plant in the future. That means a reduction of roughly 70 jobs over a period of nearly one year and will include contract workers. The first terminations will most likely be announced in November 2023 and will involve 30 to 40 employees. The company is also working on socially compatible solutions for the employees concerned.

(end)

Emitter:	Zumtobel Group AG Höchster Straße 8 6850 Dornbirn Austria
Contact Person:	Eric Schmiedchen
Phone:	+43 5572 509 1125
E-Mail:	eric.schmiedchen@zumtobelgroup.com
Website:	z.lighting
ISIN(s):	AT0000837307 (Share)
Stock Exchange(s):	Vienna Stock Exchange (Official Trade)