Adjustment of capacity at Schindler factory in Ebikon

Demand for high-rise elevators has declined worldwide and is likely to remain at a substantially lower level for several years. This has led to a considerable drop in the volume of production at the Ebikon component factory. Moreover, the postponing of individual construction projects has resulted in an additional fall in volume.

Because of the lower demand for high-rise elevators, Schindler has been forced to adjust capacity at its Ebikon factory through a reduction in personnel. At the same time, reduced work hours are to be introduced in response to the postponing of construction projects.

From May 1, approximately 110 employees in production and supply chain management at the Ebikon factory are to be placed on reduced hours until the summer vacation. This measure will affect approximately 65% of the employees working in these areas.

At the same time, a consultation process has been started concerning the planned reduction of the factory's 250 personnel by 36 employees. It is anticipated that 20 employees will need to find alternative employment. They will receive support from outplacement specialists. Three employees are to be deployed in other positions internally. The remaining 13 employees are to take early retirement.

The Schindler component plant in Ebikon is well positioned in the market for high-rise elevators. These painful capacity adjustments should ensure that the Ebikon factory remains competitive in this weakening market and once the recession is over.

Contact: Ivo Zimmermann Schindler Management AG Deputy Head Corporate Communications Zugerstrasse 13 6030 Ebikon Tel. +41 41 445 31 62 Fax +41 41 445 31 44

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