The STI Group announces that the activities of the plant in Grebenhain are to be relocated to other sites and the sites consolidated.
The Grebenhain plant is Part of the STI Group's Display segment and is operating at a loss. The aim of this measure is to Group's display business competitive for the future to set up.
The intended relocation of the Grebenhain activities The 283 employees at the site will concern. The company intends to offer as many employees as possible a Offer change to other locations, if possible also in the region. The STI Group will discuss the details with the employee representatives in order to find constructive and responsible solutions for the employees.
Dramatic price pressure in the display market
Enormous price pressure and strong competition characterise the change in the market for sales displays. The shift in marketing budgets towards digital sales channels is also having a negative impact. Although the STI Group is positioned as a premium provider in Europe, the company has not been able to participate in market growth due to the dramatic price pressure in the display market over the past five years and has not been able to realise its full potential. The Display segment recorded a decline in sales. In contrast to this The Group's Packaging segment has grown strongly in recent years.
The Grebenhain site is one of four STI Group sites where displays are produced. The site is particularly affected by the market dynamics. The site's total operating performance and gross profit have declined significantly. Despite great efforts by the workforce and management, profitability has not been achieved since 2014/2015. The location is making operating losses and the COVID effects further exacerbated the negative trend in the first quarter of 2020.
The display area was hit hard by the COVID-19 pandemic met. The Cancellation of major events - and thus classic occasions for promotions in retail - leads to a decline in planned sales totalling EUR 20 million. These negative effects are not compensated for by the successful growth in the Packaging segment.
„We have carefully examined all possible options for the Grebenhain site. However, the relocation is unavoidable in order to be successful as a group of companies in the Display segment in the future. We regret the planned relocation at this challenging time for all of us.“
Jakob Rinninger, CEO of the STI Group
The company wants to respond even more flexibly and quickly to customer needs in the future and relies on a new scalable production logic through the integration of display and packaging.
„With this consolidation, we also want to position ourselves competitively in the display sector and further expand and strengthen our premium position with our customers,“ says Jakob Rinninger.
Source: STI Group
