Groundbreaking ceremony for second STIHL chain production plant in Switzerland

f_spatenstich_stihl_schweiz_2007_03_30_rdax_156Г—100.jpgThe STIHL Group began construction of its second Swiss chain production facility in Bronschhofen, in the canton of St. Gallen, with a symbolic groundbreaking ceremony on March 30. The company will be investing a total of SFR 160 million to build a new factory on the 20,000 square meter site. The first phase is scheduled to start production in mid-2008. About 200 new jobs will be created at that location.

Switzerland offered crucial benefits
STIHL had considered a number of locations for the new factory – including Germany and the United States. Advisory board and supervisory board chairman Hans Peter Stihl stressed the advantages of the Swiss site: “It is primarily the lower ancillary wage costs compared to Germany and the longer weekly working hours in this country.” The lower overall tax burden is another point in favor of Switzerland.

Know-how of existing chain production factory will be utilized
For strategic reasons it was decided to set up the new production facility as a unit independent of the existing chain plant in Wil, which is also in the Swiss canton of St. Gallen. In his speech at the groundbreaking ceremony, STIHL CEO Dr. Bertram Kandziora pointed out that “the existing know-how of the chain factory in Wil tipped the scales in favor of Bronschhofen.”

Cantonal government calls STIHL “a model company”
Karin Keller-Sutter, president of the government of St. Gallen, said at the ceremony that the choice of location is of great significance for the economy of Bronschhofen and the canton of St. Gallen. She praised the cooperation with STIHL: “Being a successful global player, STIHL is seen as a model company, also in terms of its close contacts and good cooperation with the authorities.” She added that creating optimum peripheral conditions for corporate activities would continue to be a major objective of the cantonal government.

press-release:В STIHL Group

March 2007

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