Systemair has decided to discontinue the production of the Menerga products in Muelheim an der Ruhr, Germany, in 2024.
The factory currently manufactures highly efficient ventilation units for swimming pools, waterparks, and low energy buildings.
The production in Muelheim an der Ruhr will be discontinued and in parallel production of Menerga products, in Systemair's existing plant in Slovenia, will be ramped up.
The process is expected to be completed in 2024. Resources for product development, sales, and support will remain in Muelheim an der Ruhr.
The service business, which is extensive, will remain unchanged. The structural change entails a cost of approximately SEK 125 million ($A17.9 million) for severance pay and impairment of assets, which will be charged to operating profit for the third quarter of 2023. In connection with the changes, the product range is also reviewed, and upgraded to a new common technical platform.
The restructuring is expected to generate annual cost savings of at least SEK 70 million ($A9.89 million) with full effect from the financial year 2025/26.
Systemair CEO, Roland Kasper said the decision to build up production in Slovenia is to streamline and modernize Menerga's operational basis.
He said Menerga's customised solutions will be produced on the newly developed Systemair technical platform.