Dieffenbacher to implement cost reduction measures

The reason for this, says the company, is that the costs of developing new products such as pellet systems or innovative carbon fibre technology ready for market launch were in some cases higher than the company had estimated.

The management is convinced, however, that these innovations represent an important investment in the future of Dieffenbacher. The company intends to use these technologies to make inroads into new industries and lay the foundations for further growth.

Necessary restructuring will primarily take place at foreign sites. The decision was taken to reduce personnel numbers by approximately 100 associates across the Asian and North American sites.

For the headquarters in Eppingen, a supplementary collective wage agreement, plus additional arrangements, has been agreed with the IG Metall union and the works council.

This involves each associate waiving 75 hours' worth of credit on their time accounts. Furthermore, a deferral of one-time payments such as part of the Christmas bonus has been agreed, in conjunction with an agreement to repay the deferred sums plus interest as soon as the company's results improve.

The expectation is that this will be achieved as early as 2015. In return, the company has given the associates a commitment that the site will be secure until the end of 2015.