KUKA reorganizes business in France and intends to close loss making locations

KUKA AG, a company that specializes in automating industrial manufacturing processes, is reorganizing its business in France

July 20, 2009

In view of the continuing weakness of the automotive business, KUKA's future strategy will be to concentrate on the robotics business of its subsidiary KUKA Automatisme + Robotique S.A.S., based in Villebon sur Yvette. The goal is to increase sales of robotic applications to the general industry.

Following the cost reduction programs already implemented, the business in France is to be reorganized. Measures include closing KUKA Systems in Tours and Montigny Le Bretonneux near Paris. A severance agreement is to be put into place in coordination with the works councils and union representatives for the 144 affected workers.

All existing contracts with KUKA Systems France customers will be fulfilled and are considered in the reorganization. Systems customers in France will in future be served by KUKA Systems in Germany.

The local resources had already been adjusted to suit the declining demand in previous years. Ongoing losses associated with these activities and lack of a positive medium-term outlook for the automotive business made reorganization necessary.

About KUKA Systems France

KUKA Systems France S.A. is a 100-percent-owned subsidiary of Augsburg-based KUKA Systems GmbH, a leading supplier of engineering services and flexible automation solutions. In 2008, KUKA Systems France generated sales of EUR 37.2 million with 198 employees. The company was formed in 2007 by merging several Farman Group companies. Farman Group itself was acquired in 1996 by IWKA AG, today's KUKA AG.

 

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