Following the huge slump in demand for capital goods in the automotive industry — a trend that has been worsened by the Covid-19 pandemic — the Swiss Mikron Group (www.mikrontool.com), which specialises in high-precision, productive and adaptable automation solutions, machining systems and cutting tools, is reducing its capacity and simplifying group structures.

The core measures being adopted involve streamlining machine manufacturing by concentrating on rotary-transfer machines and consolidating activities at one production site, as well as intensifying Mikron Automation’s focus on assembly automation systems for the pharmaceutical and med-tech industries.

The machine-manufacturing workforce in Agno (Switzerland) will be reduced from the current 340 FTE (full-time equivalent) people to around 280 FTE; this will involve 47 redundancies and cutting the working hours of another 57 employees.

At the Rottweil site in Germany, machine tool assembly will be discontinued, and the FTE count will be reduced from 150 to 100.

These measures will not affect Mikron Tool’s two production sites in Agno and Rottweil. Furthermore, Mikron will dispose of its Berlin site, which employs 70 people, belongs to Mikron Automation and only handles orders for the automotive industry.

By implementing these measures, Mikron is responding to the medium-term downturn in demand for capital goods in the automotive industry, while safeguarding machine manufacturing at Agno and intensifying Mikron Automation’s focus on the pharmaceutical and med-tech industries.

These measures will incur ‘restructuring costs and valuation adjustments’ in the order of CHF 15 million, and they will lead to a significant negative result for the full financial year.