Elimination of over-capacity requires closure of Wartberg plant
In January 2006, the Supervisory Board of Vogel & Noot announced its intention to close the steel panel production plant in Wartberg, Austria, during the first half of 2006. The capacity utilization at the plant, which was designed for an output of more than 1.2 million units, has steadily fallen to just over 60%. Downturn in panel radiator markets due to sluggish construction activity together with growing interest in electrical and underfloor heating systems in some markets have resulted in an overcapacity of some 30-40% for panel radiator production in Europe.
The plants in Poland and Hungary will take over Wartberg’s production volumes. The use of 40mm product concept throughout all Vogel & Noot plants means that the additional volumes can be quickly absorbed without any negative effects on customer service. Vogel & Noot plans to provide voluntary benefits beyond legal requirements and an outplacement foundation to helping the personnel of 170 affected back into employment. Administrative, sales, logistics as well as Research and Development functions will remain in Wartberg..