The HOCHDORF Group is initiating a far-reaching restructuring of the group. Production is to be concentrated at the Sulgen site by the end of 2023. Headquarters and administration will remain in Hochdorf. The proceeds from the planned sale of the land and building in Hochdorf should relieve the balance sheet.
In the past quarters, HOCHDORF succeeded in stabilising its operating business and selling or closing participations. Nevertheless, the group still suffers from an excessive debt burden of approximately CHF100m (excluding hybrid bond in the nominal amount of CHF125m), which is attributable to the forward strategy that failed in 2019.
The company currently operates two sites, Hochdorf and Sulgen, with around twice as many production employees in Sulgen as in Hochdorf. The Sulgen plant is modern in the area of baby care equipment and has sufficient spare capacity for future development. The relocation of the Sulgen plant will make it more profitable in all areas, as the volume of raw materials processed and thus also the capacity utilisation will increase. In contrast, considerable investments would have to be made in the facilities in Hochdorf over the next few years, which will not be possible for the company from an economic point of view.
Thanks to the site optimisation, HOCHDORF expects annual cost savings of CHF7m to 9m from 2024.