Cicor to consolidate thin-film production in Switzerland

ZURICH - Cicor Group (SIX:CICN), a leader in hybrid circuit manufacturing in Europe, announced plans to centralize its thin-film production operations at its Wangs, Switzerland facility. The move involves discontinuing production at the Ulm, Germany site by the end of June 2025.

Reinhardt Microtech AG, operating under Cicor since 2007 and a part of the Advanced Substrates Division, has been managing the Ulm site since acquiring its thin-film business in 1998. The consolidation is aimed at reducing operational complexity, enhancing flexibility, and improving risk management for Cicor. Economic considerations have also been cited as a reason for not maintaining the production capabilities in Ulm, despite both locations being technologically equipped to produce identical components.

Following the consolidation, Reinhardt Microtech GmbH will retain its presence in Ulm as a sales and competence center, maintaining service to its established German customer base.

Approximately 30 employees will be affected by this decision, with their employment set to end on June 30, 2025. Cicor has offered these employees opportunities to relocate to the Wangs site or to assume sales roles in the Ulm region.

This restructuring is expected to impact Cicor Group's EBITDA by a six-figure sum in Swiss francs for the current year. However, the move is projected to significantly enhance the performance of the business unit and the Advanced Substrates Division post-relocation. The company has stated that this measure will not influence its 2024 guidance or mid-term objectives.

The information in this article is based on a press release statement.

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Source: Investing.com