Rieter has agreed with the Works Council at the Ingolstadt location on a package of measures for employees affected by the planned reduction in the workforce. The offers submitted by Rieter to some 220 employees include termination contracts or a switch to a transfer company.

“To prepare the employees for the requirements of the job market, consultancy and mediation services, as well as qualification measures, are essential components of the transfer company,” the company explains.

Once the measures are complete, a cost reduction of over CHF 15 million is expected from 2019. For 2017, Rieter anticipates a negative impact on earnings of CHF 36 million. This includes provisions for restructuring costs of CHF 30 million and a one-time impairment of CHF 6 million.

Rieter is a supplier of systems for short-staple fibre spinning. Based in Winterthur, Switzerland, the company develops and manufactures machinery, systems and components used to convert natural and manmade fibres and their blends into yarns.

Rieter covers spinning preparation processes, as well as all four end spinning processes. With 18 manufacturing locations in ten countries, the company employs a global workforce of some 5,230, about 20% of whom are based in Switzerland.

www.rieter.com