Cincinnati Extrusion investing almost 3 million EUR in the future in spite of the general crisis
Just like everybody else, the Viennese machine manufacturer has not been unaf-fected by the general financial crisis and has had to accept a decline in order entry. Nevertheless, Cincinnati is investing close to 3 million Euros in the modernization and extension of its production machinery to prepare for the demands of the future. Cincinnati Extrusion GmbH (www.cet-austria.com) is currently anticipating an over 40% decline in the market for extruders and extrusion lines. This estimate is confirmed by re-cent VDMA (German Engineering Association) figures. According to Walter Hader, Managing Director and CEO of Cincinnati Extrusion, a sustained recovery is not generally expected to set in before 2010. That the crisis has not hit the Viennese machine manufacturer quite as hard as some other companies is primarily due to the fact that the sharp market decline was already anticipated in the middle of last year, so that the company was able to take internal measures to prepare for the crisis at an early stage. This led to corporate restructuring, which also involved some retrenchment of personnel. Moreover, Cincinnati will go on reduced working hours for at least 3 months from the beginning of April to cope with the current economic downturn. At the same time, however, this will avoid the risk of having to lay off more staff, “...who will definitely be urgently needed in the future”, says Hader. Thanks to its early restructuring measures, Cincinnati Extrusion is now on a sound finan-cial footing, which enables it to plan for the future even in such difficult times and to invest some 3 million Euros in the modernization and extension of its screw manufacturing facility located in Vienna.