Work transfers to the US as Vienna slims down operations and staff

Work transfers to the US as Vienna slims down operations and staff

SMS Folientechnik is ending manufacture of its film and foam extrusion lines in Vienna, Austria. Engineering and assembly facilities will be transferred to Battenfeld Gloucester Engineering in the US, which will become the centre of competence and production for the Film and Sheet Technology division of SMS Plastics Technology.

The company in Vienna will remain the sales and service centre responsible for customers in Europe, Africa, India and the Middle East. Around 45 staff will be affected by the restructuring.

SMS Folientechnik’s managing director Dr Phil Niccolls, who moved to Austria when manufacturing at Battenfeld Gloenco in the UK was closed, is among those who have left the organisation. The decision is the first evidence of Wilhelm Schrцder’s cost-cutting measures since he took over as chairman of SMS Plastics Technology at the start of the year. Last month his predecessor Helmut Eschwey was criticised for being “too optimistic in his planning” by SMS Group chairman Dr Heinrich Weiss (PRW.com 22 March).

SMS’s plastics film machinery business increased turnover by 4.4% to E117m in 2003, mainly due to good results at Gloucester, but compared with the previous year order intake was down 8.6% to E117m.