The ailing Hochdorf milk processor will gradually close its plant in Hochdorf LU over the next few years and eliminate more than 100 jobs there. Hochdorf announced on Tuesday that production will be assembled at the Sulgen TG site by 2023. The reason for the change is a tense balance sheet situation. Although the company has stabilized its operations in the past few quarters and sold or closed its holdings, Hochdorf still has a high debt burden of about 100 million francs. This is due to the futuristic strategy that failed in 2019.
By consolidating its activities in a modern factory in Solgen, Hochdorf aims to save 7 to 9 million francs annually from 2024 onwards. In addition, the area will be sold in Hochdorf. The company hopes to find a buyer by the end of the year.
According to the announcement, the planned restructuring of the group will reduce the number of jobs in Hochdorf from about 190 today to about 70 by the end of 2023. This means: the disappearance of 120 jobs. Only the management of the company and the management of the group remain in Hochdorf.
non-economic investments
At the same time, about 45 jobs will be created in Solgen. According to the announcement, Sulgen already has twice as many employees as Hochdorf. The company will contact social partners to make job cuts socially acceptable, she says.
Significant investments will have to be made in facilities in Hochdorf over the next few years, which the company will not be able to handle economically, and the move is justified. On the other hand, the production site in Sulgen is state-of-the-art in the field of childcare systems and has sufficient capacity to assemble production there.
Moving the plant will make the Sulgen site “more profitable across the board”, as it will increase the amount of raw materials processed and therefore capacity utilization as well. (SDA)
“Tv expert. Hardcore creator. Extreme music fan. Lifelong twitter geek. Certified travel enthusiast. Baconaholic. Pop culture nerd. Reader. Freelance student.”
More Stories
Mercedes-Benz recalls 261,000 SUVs
With a private cabin Markets: Aegean flies on long-haul flights with the Airbus A321 LR
USA: The great achievement of Donald Trump