Dorma+Kaba and the Future Plan Germany
Dorma+Kaba wants a faster pace of innovation, faster product development, a more streamlined organization and more consistent exploitation of synergies from the merger. Behind the words, however, is a reduction of almost 450 jobs in Germany.
In this plan for the future, the German site plays a key role, to which both integration measures from the merger to form the Dorma+Kaba as well as existing business plans of the former Dorma Group, according to the statement. The plan is an important building block of the already announced targets to achieve an Ebitda margin of 18% and organic sales growth of at least 2% points above adjusted global economic growth in the financial year 2018/2019, it said.
Strengthen innovation location
For the next few years, Dorma+Kaba plans to invest funds in the double-digit million range for
- the new development of technologically high-quality products,
- the relocation and modernization of production facilities
- and the further development of information technology.
The Future Plan for Germany contains the following core elements:
- The Ennepetal site as a competence center for mechanical and electronic door technology is to be expanded and thus consistently developed further.
- At the same time, the manufacture of certain standard products (door closers TS 93 and BTS 80) is to be relocated from Ennepetal to Singapore, while other products will be moved from Singapore to Suzhou (China).
- The Ocholt site (Movable Walls segment) is to be made fit for the future by automating production for movable partition systems.
- The unsatisfactory earnings situation of Hardware Technology at the Velbert site, which has been evident for some time, is to be improved by cost-cutting measures.
- The activities of Kaba Mauer in Heiligenhaus are to be relocated to the existing sites in Bad Berka and Velbert, among others.
- A restructuring concept is currently being negotiated for the loss-making sanitary ware business at the Rietberg site; alternatively, a sale or closure is being considered; for the sanitary ware business at the Bad Salzuflen site, this will also mean an adjustment of production capacities with a corresponding reduction in personnel.
Job cuts in Germany and relocation to Asia
The realignment, the relocation of production areas and the more effective organizational structure will lead to a reduction of around 440 jobs at various Dorma+Kaba sites in Germany, the group writes. On the other hand, the industrial group intends to strengthen its sites in Singapore and Suzhou (China), with talk of around 160 new jobs to cover increased production requirements. The German headquarters of Dorma+Kaba, the head office for the Access Solutions DACH segment and some of the group functions would remain at the Ennepetal site. The implementation of all measures is expected to be completed in the course of 2018.
