Bühler Madrid shuts down production in Pinto – Engineering Center of Competence and Sales & Services will be retained in the Iberian PeninsulaUzwil/Madrid, 09/26/2014 – The Bühler factory in Madrid, which specializes in the production of conveyers, can no longer be sustained due to a lack of orders, changed market conditions, and obsolescence of its products. In view of this loss-generating situation, the decision has now been made to discontinue production activities. However, Bühler Madrid will continue its Engineering Competence Center and its Sales & Service organization with almost 100 employees. Buhler S.A. in Spain specializes in the production of conveyers and the sale of equipment and pro-duction processes for the food industry. Today, its workers’ legal representatives were informed of the beginning of a collective dismissal process and the shutdown of its production activities in Pinto near Madrid. The factory is incurring losses, and its output is declining progressively due to a lack of orders as a result of product obsolescence and changing market needs. In all, almost 100 production jobs will be lost.
The company will retain its Engineering Center of Competence and Sales & Services with nearly 100 people, which currently markets Bühler Group’s products and services in the Iberian Peninsula.
Bühler Madrid incurred losses of EUR 0.2 million in 2013. Without the measures taken now, losses stood to rise to EUR 0.3 million in 2014 and EUR 1.7 million in 2015, jeopardizing the company’s viability in Spain. During the first half of 2014, capacity utilization dropped to 55%, with a consequent deterioration of productivity, revenues, and profitability.
The decision to close the factory was made after Bühler Madrid had taken several measures before, which however failed to bring about an improvement. In 2013 and 2014, in agreement with the Works Council, the company shut down the factory on additional days after the holidays and implemented a four-month temporary downsizing plan for part of the staff.
Bühler Madrid has initiated a dialog and negotiations with the trade unions and is convinced that an agreement can be reached with minimum social impact, helping ensure the company’s viability. Following legal procedures, Bühler Madrid has convened the Works Council to a meeting on October 1st to negotiate the terms of collective dismissal.
Bühler is a global leader in the field of process engineering, in particular production technologies and services for making foods and advanced materials. Bühler operates in over 140 countries and has a global payroll of over 10,000. In fiscal 2013, the company generated sales revenue of CHF 2,322 million. Bühler GmbH, its German location in Braunschweig, currently employs some 600 persons.
Contact for media:
Frank Nehlig, Head of Corporate Communications, Bühler AG, 9240 Uzwil, Switzerland
Phone +41 71 955 26 89, Fax +41 71 955 38 51, E-mail email@example.com