Cicor Restructures Operations, Reduces Guidance

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Cicor, a high-tech industrial group and international leader in the areas of printed-circuit boards, microelectronics and electronic solutions, with its head office in Boudry (Switzerland), is concentrating its printed-circuit board production in the Advanced Microelectronics & Substrates Division (AMS Division) in Boudry (canton of Neuchâtel). In addition, the Electronic Solutions Division (ES Division) is to concentrate customer support in Switzerland at the ES Division’s principal location in Bronschhofen (Wil, canton of St. Gallen). Restructuring costs associated with these two measures will affect the Cicor Group’s year-end results in the amount of CHF 4.9 million. The Group is lowering expectations for the 2015 fiscal year.

Cicor Group has decided to merge the AMS Division’s two PCB production locations in Switzerland. This move will involve consolidating the Cicorel SA location in Moudon with the location in Boudry. Existing competencies and manufacturing processes in Moudon will be integrated into the Boudry site. This means that customers of Cicorel SA in Moudon will in future be served by the Boudry location.

Cicorel SA in Boudry produces rigid, rigid-flex and flex circuit boards (PCBs) in close cooperation with customers in the medical technology, automotive, watches, aerospace, telecommunications and consumer goods industries. The company has extensive know-how in the fields of multilayer circuits, highly integrated circuits and reel-to-reel production. For the factory in Boudry, the merging of competencies means an expansion of its portfolio in the area of highly complex PCBs.

Cicor Group has also decided to merge the ES Division’s customer support operation in Switzerland from its previous two locations into one joint location. As part of this measure, the Ticino sales office in Quartino will relocate to the ES Division’s headquarters in Bronschhofen and have its existing competencies integrated there.

Swisstronics Contract Manufacturing AG in Bronschhofen is an electronics service provider with a broad range of production capabilities in printed circuit board assembly, system assembly and box building. The company offers outsourcing solutions for the development and manufacture of electronic modules as well as complete devices and systems.

Thanks to the concentration of customer support - from customer acquisition to project management and production and after-sales support - and the efficiency gains from the new production and administration building currently under construction, there will be fewer interfaces and weak points, while clients will be served more efficiently and effectively.

Regrettably, some layoffs in Moudon and Quartino will be unavoidable.

The merging of the Swiss locations will increase efficiency and reduce costs, both of which are necessary under the current difficult economic situation in order to be successful in international business. Switzerland will continue to play a central role as a location within the globally positioned Cicor Group, which has production sites in Germany, Romania, China, Vietnam, Indonesia and Singapore.

Restructuring costs of around CHF 4.9 million associated with this step will weigh on the Cicor Group’s year-end results. Due to these non-recurring costs and in light of a weak third quarter as well as the ongoing difficult market situation, Cicor is reducing expectations for the full fiscal year. The Group expects sales of around CHF 180 million in 2015 and a net profit before restructuring costs significantly below that of the previous year.

About Cicor

Cicor is a globally active group of leading companies in the electronics industry. It is organized into two Divisions: Advanced Microelectronics & Substrates (AMS) and Electronic Solutions (ES). The Group's companies provide complete outsourcing services and a broad range of technologies for the manufacture of highly complex PCBs, 3D-MID solutions, hybrids and electronic modules. With around 1950 employees at eleven production sites worldwide, the Group supplies high-quality customized solutions to clients in Europe, the US and Asia. The shares of Cicor Technologies Ltd. are listed on the SIX Swiss Exchange (CICN).