SECO

The client:

Secop is a manufacturer of compressors for refrigerators. The company was acquired by the investment fund ESSVP IV in 2019. The background to the transaction was the antitrust decision by the European Commission and Commissioner Margrethe Vestager that the Japanese owner Nidec was allowed to acquire the Brazilian compressor manufacturer Embraco from the American Whirlpool Group only if Nidec in turn divested Secop. At that time Secop had about 1,800 employees and an annual turnover of more than € 300 million. The company’s focus was on the production of compressors for the market segments household, light commercial and mobile cooling. There were three production sites: Austria (Fürstenfeld), Slovakia (Zlaté Moravce) and China (Tianjin).

The project:

Management Factory provided the CFO of Secop Holding on an interim basis from Sept. to Nov. 2019 and the CEO of the to be restructured Austrian subsidiary from Oct. 2019 to Sept. 2020. After a complete closure of the Austrian production site had to be announced on Oct. 22nd 2019, the company succeeded in 2020 in winning Nidec as a new tenant for the production site in Fürstenfeld, thus saving many of the work places in Styria.

 Highlights:

  • Withdrawal of Secop from the unprofitable household business and strategic reorientation towards the light commercial and mobile cooling segments. Bundling of the compressor production at the sites in China and Slovakia.
  • With the approval of the European Commission, sell-back of the Delta household production line in Fürstenfeld to Nidec.
  • Transfer of the Kappa line from Fürstenfeld to the Slovakian Secop sister plant in Zlaté Moravce.
  • Transfer of the Fürstenfeld production site to Nidec. Implementation of a TSA (transitional service agreement) from June 2020 to January 2021.
  • Multi-stakeholder management including the European Commission, local politicians, the owners, the Secop management, the Austrian labour unions, the workers’ council and numerous consultancies.
  • Active and complex public relations work.
  • Negotiation and signing of a social plan and a labour foundation.
  • Search for a new location for Secop in Austria: relocation to Gleisdorf in August 2020.
  • Covid-19 measures to protect the employees and reduce the costs.

 

 

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