IMPact project moving ahead as planned
The measures planned as part of the IMPact project to optimise the Vaillant Hepworth Group's manufacturing network across Europe are moving ahead rapidly. The concentration of the floor-standing boilers production at our Skalica plant (currently carried out in Bergheim (D), Skalica (SK), Vignolo (I) and Gelsenkirchen (D)), has started last month and will be completed by March 2005. This means that the production of VH boilers in Vignolo will be discontinued by the end of June this year, and the freed-up capacity in Bergheim will in part be filled by further manufacture of storage cylinders.
The wall-hung appliances presently assembled at five manufacturing sites will be concentrated at the four locations Remscheid, Nantes, Belper and Skalica. This also affects – as planned from the start – the re-location of condensing boilers production from Gelsenkirchen to Remscheid and partly also to Belper, as well as the switching of one appliance from Skalica to Nantes (F). The first batches of condensing wall-hung units are already being produced in Remscheid and Belper (UK). The shifting of production is to be completed successively over the next 12 months. As already announced, this means that the number of employees in Gelsenkirchen will drop from 272 to 162 (pipe manufacture: 38, spare parts production: 60, new products: 12, Tecbytel: 52). In addition, the number of apprenticeship places will be increased from four to six.
The balance of interests and the social plan for the German locations Remscheid, Gelsenkirchen, Bergheim and Roding (D) have been concluded by mutual agreement. Also in Vignolo the social plan has been agreed upon. The planned changes in Nantes and Bergara (E), because of the new structure of gas water heater production, will also be implemented in accordance with the applicable codetermination regulations and agreements.
The preparations to start the assembly of modules near Trencin, Slovakia, are also proceeding as planned. The production of modules such as condensing engines and hydraulics is to begin there at the end of this year.
Optimising the VH manufacturing network is expected to deliver cost reductions of € 5 million during this year, and savings of more than € 30 million per year are assumed from 2006. From the € 150 million capital expenditure planned from 2004 to 2006, € 20 million will be spent to implement IMPact.
Contact
Vaillant Hepworth Group
Ebrulf Zuber
Corporate Communications
42850 Remscheid
Phone: +49 (0)2191 - 18 2754
Fax: +49 (0)2191 - 18 2895
E-mail:ebrulf.zuber@vaillant.de
