Ferromatik Milacron: Economic Conditions Force New Cost-Cutting Measures

The board of directors at Ferromatik Milacron yesterday spoke with employees about the ongoing impact of the international economic crisis on the company, and the need for new cost-cutting measures. Details of these measures are still to be determined.

Over the past twelve months new orders at Ferromatik Milacron have fallen by approximately 50 percent. While the company has been able to maintain its market share over this period, the margins on new machine sales have also fallen. In the coming year a modest increase in new orders is anticipated. A new product line, currently in development, is expected to drive strong sales in 2011.

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Since January 2009 Ferromatik Milacron has had a range of cost-saving measures in place, including reduced overhead and materials costs, and cuts to workers´ hours. "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" said Guy Moilliet, managing director at Ferromatik Milacron. "We are now beginning negotiations with our labor representatives and the union in order to find the best solution for everyone, given the difficult circumstances we´re facing." Options include shorter shifts across the whole company, a transitional support option for workers, including compensation and retraining, and permanent cuts to the workforce. "Our goal is to find the fairest and most socially responsible solutions," stated Thomas Flamm, chief labor representative at Ferromatik Milacron. Ferromatik Milacron currently employs 414, including 17 apprentices, at the company´s main facility in Malterdingen, Germany.

More Information: www.ferromatik.com

Ferromatik Milacron Maschinenbau GmbH, Malterdingen, Germany