Market news, 23 July 2024
Fürstenfeld, 22 October 2019. Secop Austria GmbH (former Nidec Global Appliance Austria GmbH) will discontinue manufacturing of compressors for household refrigeration appliances. The Secop Group has informed its employees today about the plan to focus production at its facilities in Slovakia and China. As a result, the production lines of Secop Austria GmbH will be relocated, all other functions remain in Fürstenfeld. The workforce in Styria will be reduced by approx. 250 employees until mid 2020. By pooling its production at one European manufacturing location, Secop Group will further strengthen its competitive position as global leader for compressor solutions for battery driven and light commercial markets.
Due to its weak market and cost position in compressors for household refrigeration appliances as well as intense competition from Asian suppliers, Secop Austria GmbH was facing losses and eroding production output in last years. The significantly negative outlook for the household segment in the next years forces the Secop Group to adopt these radical measures in Fürstenfeld.
The discontinuation of the loss-making household business in Austria allows Secop to focus on its core business. Secop will intensify the further development of compressors for battery driven and light commercial applications in order to secure and strengthen its market leading position in these segments. Ricardo Maciel, CEO of Secop Group: ”We have achieved an excellent reputation as technology leader and a market leading position in these segments in recent years.”
After the relocation of the production lines, workplaces for highly qualified employees in research & development, sales, administrative, and global functions will remain in Fürstenfeld. Secop highly values the competence and knowledge of these employees and counts on their continued support in the future.
Secop is fully aware of its social responsibility for the employees in Fürstenfeld. Maciel: "Our employees have worked very hard in the last years to reduce production cost and to avert the site closure. In the weeks to come, we will draw up a social plan together with the workers’ council. At the same time, we will set up a foundation in cooperation with the Styrian labour market service, which will support the employees concerned in further training and qualification as well as search for employment.”
