The offers submitted by Rieter to some 220 employees include termination contracts or a switch to a transfer company. "To prepare the employees for the requirements of the job market, consultancy and mediation services as well as qualification measures are essential components of the transfer company," the company said in a press release.
Production will be transferred to Rieter’s Usti site in the Czech Republic.
Once the measures are complete, a cost reduction of over CHF 15 million is expected from 2019. For 2017, Rieter anticipates a negative impact on earnings of CHF 36 million. This includes provisions for restructuring costs of CHF 30 million and a one-time impairment of CHF 6 million. (RR)
ALCHEMPro News Desk – India
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