Zehnder to close UK and Italy facilities

SWITZERLAND: Indoor climate solutions company Zehnder is to cut staff by 10% and close its facilities in Rustington (UK) and Vedelago (Italy).

Zehnder, whose product portfolio includes radiators, heating and cooling radiant panels, climate control systems and air filtration units, blames the measures on stagnation in the construction industry, reduced demand in the radiator business and negative currency influences.

The former Greenwood Airvac facility in Rustington, home of the UK ventilation company it acquired in 2008, will be closed along with the Zehnder location in Vedelago, Italy. Their activities will be integrated into their respective national subsidiaries. Strategic options are also said to be currently under review for the production facility in Châlons-en-Champagne, France – the development and production of components for its heat-pump-based ComfoBox compact heating, cooling, domestic will be transferred from Switzerland to a partner in the euro currency zone.

Explaining the decisions, ceo Dominik Berchtold said: “Zehnder Group has the right strategy, with a solid foundation in relation to technologies, products, innovation and capital. With these wide-ranging measures we will create the prerequisites needed for long-term success in a challenging market environment featuring a sluggish economy and adverse currency developments. This initiative is the continuation of the optimisation drive launched in recent years.”