Street Calls of the Week
Investing.com -- SFS Group plans to shut down its Flawil production site by the end of 2027 and transfer part of its operations to Heerbrugg, the company announced Friday.
The closure will impact approximately 110 jobs, with about one-third of these positions expected to be relocated. The decision comes in response to weak demand and structural changes in the European automotive industry.
SFS will focus future operations on cold forming, which the company describes as its core technology, while discontinuing deep drawing activities in Europe.
A consultation process with affected employees will run until November 7, 2025. The company stated that a social plan will be prepared if layoffs become necessary.
CEO Jens Breu described the decision as "difficult but necessary to safeguard competitiveness." The Flawil closure is part of a broader global restructuring program that SFS announced in July.
The comprehensive restructuring initiative involves changes to parts of the company’s production and distribution network. Overall, around 650 full-time positions, representing more than 5% of the workforce, will be affected. The company also plans some product pruning as part of the adjustments, which are scheduled to be completed by the end of 2027.
According to Kepler, this move demonstrates that after experiencing several weak quarters, SFS is adapting to a more challenging market environment.
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