Gurit plans to divest winter sports unit

09 May 2008 08:05  [Source: ICIS news]

SINGAPORE (ICIS news)--Advanced composite materials maker Gurit announced on Friday that it will divest its winter sports business in Berne, Switzerland, to French sports and apparel firm Socrep by the end of August.

 

The Switzerland-based company will receive a “low single-digit” Swiss franc amount for the divestment of the facility that attained poor levels of profitability despite earlier downsizing efforts last winter, it added.

 

The existing machinery will be relocated to France, with the current unit facing the risk of closure and the loss of 37 jobs.

 

Socrep will also acquire Gurit’s customer and product portfolios.

 

In November 2007, Gurit announced plans to restructure its business at a cost of Swiss francs (Swfr) 5m ($4.76m/€3.10m) during the second half of 2007. Its cost-cutting measures included the closure of its plastics facility in Ittigen, Switzerland, this spring with the loss of about 30 jobs.

 

It also recently posted an 87.3% year-on-year drop in its full-year operating income to Swfr3.5m for fiscal 2007 due to expansion costs and operational challenges.

 

Gurit’s winter sports business manufactures reinforcement fabrics and surface coatings for use in skis and snowboards

 

($1 = €0.65/$1 = Swfr1.05)

 

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By: Serene Cheong
+65 6780 4359

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