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CHIRON Group takes far-reaching steps to secure its future

The Precision Factory becomes the CHIRON Group's second production plant besides Taicang/China

The Precision Factory becomes the CHIRON Group's second production plant besides Taicang/China

Due to the crisis in the automotive industry and the effects of the corona pandemic in the aerospace industry, the Chiron Group (Germany) is confronted with a significant decline in demand. In order to secure the future of the Group, the management, supervisory board and owners have initiated a comprehensive restructuring. This includes the bundling of production and assembly in Tuttlingen and Neuhausen o. E., the concentration on service and sales of Stama products at the Schlierbach location and the sale of Scherer Feinbau GmbH, based in Alzenau.

The Chiron Group with its approximately 2,100 employees is a leading global supplier of machining centers, which are primarily used in the automotive and aerospace industries, but also in mechanical engineering and in precision and medical technology. As early as 2019, the Group recorded a significant decline in demand, triggered by the upheaval in the automotive industry and the weakening of the global economy. While the Chiron Group achieved sales of around EUR 500 million in 2018, sales in 2019 fell to EUR 443 million (-11%). In 2020, the situation was aggravated by the effects of the corona pandemic, so a further decline is expected. The Chiron Group is therefore preparing itself for further declining and highly volatile markets and anticipates a significantly reduced level of workload and unsteady sales development.

"In view of these prospects, a realignment of the Group is essential," explains Managing Director Vanessa Hellwing. "This decision was not easy for us. But we must act now to secure the future and lead the Group out of this crisis stronger than before. The Supervisory Board and the owners support this course. "Our goal is to keep the Group capable of acting in the short term and to create competitive advantages in the medium term in order to secure as many jobs as possible. We are doing this with a comprehensive package of measures. We have carefully examined all the alternatives and consider the initiated reorganization as necessary and future-proof," says Dr. Armin Schmiedeberg, Chairman of the Supervisory Board

Schlierbach focuses on Stama sales and service
The Chiron Group plans to consolidate all German manufacturing and assembly capacities in the Tuttlingen and Neuhausen o. E. plants. Accordingly, the assembly and application departments of Stama Maschinenfabrik GmbH will be relocated from Schlierbach to the Neuhausen plant, some 150 kilometers away. The Schlierbach location will in future concentrate on sales and service for the Stama brand.

"These measures will entail cutbacks. At the same time, we are bundling our production capacities in one of the most modern machine tool factories in Europe. We are also strengthening the precision and medical technology sector through a cooperation with a Swiss manufacturer of small machining centers. We are also further intensifying the successfully launched activities in the field of Additive Manufacturing. We made all these decisions after thorough analyses and careful consideration and are convinced that we are pursuing the right strategy for a successful reorientation in the interests of our customers," says Vanessa Hellwing.

Sale of Scherer Feinbau
In addition, the Chiron Group has initiated the sale of Scherer Feinbau GmbH. Founded in 1978, the company has been part of the Group since 2012 and produces CNC vertical lathes and vertical shaft turning centers at its Alzenau site. A leading lathe manufacturer is being considered as a buyer. The purchase is to be completed before the summer of 2020. The Chiron Group will thus concentrate on its core competencies of milling and mill-turning in the future.

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About the CHIRON Group

The CHIRON Group, headquartered in Tuttlingen, is a global company specializing in CNC vertical milling and mill-turn machining centers, as well as turnkey manufacturing solutions. The Group has a global presence, with production and development sites, sales and service subsidiaries, and sales agencies worldwide. Around two thirds of machines and solutions that are sold are exported. Key customer sectors are the automotive, mechanical engineering, medicine and precision engineering, aerospace industries and tool production.

The CHIRON Group is proprietor of the brands CHIRON, STAMA and FACTORY5, associated with new machines, as well as the retrofit brand CMS. The key feature of all the brands is precise, productive and flexible machining. CHIRON has a reputation for optimum dynamics. STAMA focuses on stability and heavy machining. FACTORY5 machining centers are ideally suited for high-speed machining of microtechnical components. CMS provides completely overhauled machines from the Group, including related services. With products and solutions for additive manufacturing, the CHIRON Group supplements its core competencies.

Editorial contact:

Rainer Schopp

Kreuzstraße 75, 78532 Tuttlingen
T: (0 74 61) 940-3822
E-Mail: rainer.schopp@chiron-group.com