Progress-Werk Oberkirch AG: PWO intensifies 'Operational Excellence' future program at its Oberkirch production site

DGAP-News: Progress-Werk Oberkirch AG / Key word(s): Restructure of Company
30.08.2021 / 12:00
The issuer is solely responsible for the content of this announcement.

- Introduction of a product line-oriented matrix organization in production
- Changes to open up extensive prospects for employees
- Workforce adjustment as part of the site restructuring announced in late 2020
- Additional productivity potential to be harnessed through natural fluctuation
- No further impact on EBIT before currency effects in the 2021 fiscal year


Oberkirch, August 30, 2021 - With its "Operational Excellence" future program, PWO is continuing to strengthen the competitiveness of its Oberkirch production site as part of the transformation of the mobility industry. In so doing, we are actively shaping our future positioning in an industry where the pace of change remains high- currently driven in particular by supply bottlenecks, rising purchase prices, and rapidly increasing requirements with regard to climate protection.

By the start of 2022, we will have introduced a product line-oriented matrix organization in production that allows support functions to be integrated into existing areas. The area of process engineering has already been strengthened to systematically bundle all of the support functions. This will also help to significantly improve process quality across the entire value chain.

The new organization will involve the further streamlining and adjustment of the management hierarchy in production. This workforce adjustment forms part of the site restructuring program that was announced on December 29, 2020. The Executive Board continues to strive for the most socially responsible implementation possible in consultation with employee representatives. As provisions have already been recognized, this is not expected to have a further impact on earnings in the 2021 fiscal year. In addition, efficiency analyses in recent months have shown that the new matrix organization offers the potential for additional productivity through the systematic leveraging of synergies. This potential will be harnessed through natural fluctuation.

The product line-oriented matrix organization in production is designed to be holistic and will open up extensive prospects for employees. This is accompanied by increased responsibility and hence greater scope for our managers, whose development we will support with specific programs.

In order to increase process quality, we are also continuing to invest in intelligent automation solutions and targeted digitalization with a focus on predictive fault avoidance through the real-time analysis of process data and intelligent process sequencing. All in all, optimized production control and the adjustment of the value stream design will reduce material movements and increase output.

"We announced that we would make changes quickly and we are making good on our word," says CEO Carlo Lazzarini. "This will help us to safeguard the future of the Oberkirch production site. We are also taking close care of the employees who are leaving our company and building them a bridge to the future."

COO Johannes Obrecht adds: "As well as generating synergies, the modern, product line-oriented matrix organization will lead to higher process quality, greater flexibility, and faster decision-making. This will strengthen the production site even further."

Progress-Werk Oberkirch AG
The Executive Board

PWO profile
With our innovative lightweight solutions, we are the preferred partner of the global mobility industry. As an engineering house, we are constantly driving forward the development and production of sophisticated metal components and complex subsystems.

Under the slogan "People, Planet, Progress," we use our technological leadership at the boundaries of what is technologically feasible in metal forming and joining to serve our customers and business partners. Responsibility is at the heart of everything we do. We see our business as a "force for good," as our contribution to a positive development in the future for the benefit of our customers, employees and shareholders as well as for our environment. To this end, we are focusing on digitalizing all of our processes using the tools of the fourth industrial revolution.

We address the three areas of the mobility of the future: electrification, safety and comfort. More than 90 percent of our revenue is independent of combustion engines. Around 3,000 employees at 5 production locations and 3 assembly sites on three continents ensure maximum delivery reliability and quality.

30.08.2021 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

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