In a press statement, Ferromatik Milacron said that its level of new orders has fallen by about 50% during the past 12 months. It also said that it was able to maintain its market share over that period, but that margins on new machine sales have also fallen. It expects a modest increase in new orders during 2010, and expects a new product line currently under development to drive stronger sales in 2011.
Ferromatik’s move was needed despite already having employed a variety of cost-saving tactics since January 2009, including cutting overhead and materials costs and reducing workers’ hours. Company Managing Director Guy Moilliet said, “We’ve done a lot already, but it is still not enough to bring the company safely through the current crisis and position us for the future.”
Details regarding measures to be taken have not been defined yet, but the company says options include shorter work shifts throughout the entire company, a transitional support option for workers that includes compensation and retraining, and permanent reductions of the workforce.
Thomas Flamm, the chief labor representative at Ferromatik Milacron, said “Our goal is to find the fairest and most socially responsible solutions. The current workforce at the facility in Malterdingen, Germany numbers 414, including 17 apprentices." —[email protected]