Sika Group structurally adapts its manufacturing footprint for sealants and adhesives as well as for membranes due to new production technologies and continued changes in market conditions. This reorganization ensures that Sika Group remains competitive in the long term. Approximately 50 jobs will be cut in Switzerland.
In recent years Sika has invested substantially in optimizing its production processes for polyurethane (PU) adhesives and sealants as well as membranes. New technologies and processes allow for significant gains in productivity and product quality.
The weakness in the markets, observed since 2008, continues. In addition, adverse changes in exchange rates have a further negative impact. A swift change to the more cost efficient technologies is a must. Therefore, Sika concentrates its manufacturing operations in its most efficient facilities, thus creating a sustainable lower cost basis. The measures required will affect various production sites in Europe.
Production of PVC membranes will be consolidated in Düdingen (CH) and Troisdorf (D). The current PVC production lines in Sarnen will be shut down in the course of 2010. In return, Sika concentrates its production of membranes based on thermoplastic polyolefin (TPO) in Sarnen. In addition, 30 export and logistics jobs will be relocated from Birr (CH) to Sarnen (CH). As regards the PU adhesives and sealants, Sika evaluates the relocation of the Gournay (F) production to Bad Urach (D) and evaluates the site in Fredensborg (DK).
The structural adaptations will affect about 50 jobs in Switzerland. A social plan has been set up for the employees in Switzerland concerned. This includes redundancy payments, support with career reorientation and in cases of genuine hardship as well as early retirement arrangements. In France and Denmark consultation processes with the work councils have been initiated.