Layoffs possible

Emco Hallein is still condemned to austerity measures

Consultant Andreas Tostmann supports Emco Managing Director Markus Nolte. The austerity measures are tough.

(Bild: JHK)

Emco Hallein is still under economic pressure. The machine manufacturer urgently needs to restructure. Material, service and personnel changes are imminent. The most important measures must be implemented by the end of March.

A double-digit million amount - that's how much machine manufacturer Emco in Hallein has to save (measured by the operating result 22/23). This was announced by Managing Director Markus Nolte at a press conference on Tuesday afternoon. Andreas Tostmann, a restructurer, has been appointed for this purpose. He says: "Our costs must be reduced by 15 percent. Consistent action is required. Decisions are made purely on the basis of profitability."

The aim is to save 60 percent on materials. The list of suppliers will be reduced. And Nolte says: "95 percent of our suppliers are from Austria, Germany and Italy. This is sustainable, but when it comes to producing more cost-effectively, we have to buy more from countries where costs are lower."

In addition, the aim is to save around 15 percent in service through synergies from the three plants in Italy, Magdeburg and Hallein.

The last quarter is to be saved in terms of personnel, based on three key measures:

1. A four-day week adapted to the order situation with an aliquot salary reduction.
2. Lower collective wage increases.
3. Mutually agreed terminations with a re-employment guarantee.

The most important steps must be implemented by the end of March. Otherwise, redundancies cannot be ruled out as a final measure. The company is proud of its employees, who voted 99% in favor of the restructuring package.

Importantly, the owner family is continuing to invest in the site. Stefan Kuhn, Managing Director of Kuhn-Holding: "We are 100 percent behind the company."