The machine tool industry is facing several challenges. On the one hand, there is the upheaval in the automotive industry, which has been keeping the sector busy since 2018, and on the other, the coronavirus pandemic is causing problems for machine manufacturers.

The Chiron Group is also confronted with the two crises and the resulting decline in demand. The machine tool specialist is primarily active in the automotive and aviation industries, as well as in mechanical engineering and precision and medical technology. The company was already faced with an 11% drop in turnover in 2019, from around EUR 500 million to EUR 443 million, and the coronavirus pandemic has further exacerbated the situation, meaning that a further decline is expected.

For this reason, the Group is bracing itself for continued declining and highly volatile markets and anticipates a significant reduction in employment levels and an unsteady sales trend. The management, Board of Directors and owners have therefore agreed on a comprehensive realignment to secure the company's future. "Our aim 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 alternatives and consider the reorganization we have initiated to be necessary and future-proof," says Dr. Armin Schmiedeberg, Chairman of the Board of Directors.

The realignment in detail

The Group plans to bundle all German production and assembly capacities at the Tuttlingen and Neuhausen o. E. plants. Accordingly, the assembly and application areas of Stama Maschinenfabrik will be relocated from Schlierbach to the plant in Neuhausen. In future, the Schlierbach site will concentrate on sales and service for the Stama brand.

The precision and medical technology sector is to be strengthened through a cooperation with a Swiss manufacturer of small machining centers. In addition, the activities launched in the field of additive manufacturing will be intensified.

Another step in the realignment is 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 the Alzenau site. A leading lathe manufacturer is being discussed as the buyer. The purchase is expected to be completed in summer 2020. This will allow Chiron to focus on its core competencies of milling and mill-turning in the future.