Restructuring and emerging stronger for the future

The objectives of the CHIRON Group will remain the same. Firstly, to continue to be a strong, long-term and reliable partner for customers all around the world. Secondly, to use innovative products and services to facilitate manufacturing which is precise, productive and flexible across a range of industries. However, the upheaval in the automotive industry and the generally declining and fluctuating markets due to the COVID-19 pandemic have made restructuring necessary. These measures are intended to secure a leading competitive position and for the Group to emerge stronger for the future.

Situation
A downward trend in demand was already noted in 2019. This was predominantly due to the shift in the automotive industry and a weaker global economy. In 2020, the situation was further aggravated by the direct and indirect affects of the coronavirus pandemic. A further decline is even expected in the core market of aviation. In addition, the markets as a whole are fluctuating greatly. While the forecasts for the German machine tool industry are less dire than predicted, they are not very encouraging either.

The CHIRON Group does not anticipate a speedy market recovery and is making adjustments for reduced and unpredictable levels of turnover. In light of this outlook, a restructuring of the Group is vital.

»We – the Board of Management, the Board of Directors, and the company owners – have all drawn up a comprehensive package of measures to secure the long-term future of the CHIRON Group and to be a strong and reliable partner for our customers into the future.«
Vanessa Hellwing
Managing Director of the CHIRON Group

Targeted measures to be stronger in the medium term
In 2019, the CHIRON Group already started working on strategies for mitigating the aforementioned market fluctuations. These focused on pooling expertise and processes at individual sites. Here is an overview of the measures which have been initiated, some of which have already been implemented:

  • Strengthening our core competencies of milling and milling-turning
  • Concentrating manufacturing at the Precision Factory (Neuhausen ob Eck, Germany)
  • Focusing on e-mobility and future combustion engines
  • Completing the product ranges for medical and precision technology

Changing focus in the automotive industry
The automotive industry will remain an extremely important market for us, but our focus will increasingly shift towards e-mobility and future combustion engines. The CHIRON and STAMA vertical machining centers – particularly the new series – are ideal for manufacturing workpieces with the highest degree of precision. These workpieces include vehicular and structural components for electric vehicles and combustion engine components. As a turnkey specialist, the CHIRON Group also has the necessary expertise in processes to implement increasingly complex requirements in tailor-made, automated manufacturing processes.

Focus on core competencies
Milling and milling-turning are the technology competencies that we, at the CHIRON Group, have deepened and honed to perfection over decades. For this reason, SCHERER, which specializes in vertical turning centers, will become a member of another strong group. This group will add to SCHERER's range of lathes and provide SCHERER will the necessary space for further positive growth.

Manufacturing at the best site
With its Precision Factory, the CHIRON Group has one of the most state-of-the-art machine tool factories in Europe. This site offers customers the best production environment. All of our production and assembly capacity will be brought together at Neuhausen ob Eck and – as with the Taicang Innovation Factory in China – the Precision Factory will become the CHIRON Group's production facility.

The Schlierbach site will concentrate on STAMA sales and service; production, assembly and application will be relocated to Tuttlingen and Neuhausen. STAMA customers will continue to be supported by their usual contacts in Schlierbach. Even in the new structure, the STAMA brand will continue to embody advanced expertise in heavy-duty machining and turnkey solutions.

Completing the product ranges in precision and medical technology

To broaden the Group's base in medical and precision technology and to complete our portfolio of machines for smaller components, the CHIRON Group acquired a new brand, FACTORY5, for its portfolio on August 1, 2020. In addition, with CHIRON Swiss SA the Group now has its own company in Switzerland. FACTORY5 offers a range of compact, high-precision machines for manufacturing micro technical components which can be incorporated into an innovative digital platform for networked production. The CHIRON Group is also intensifying its activities in the growth market of additive manufacturing. A prime example of this is the new AM Cube, a 3D metal printer with innovative, patented technology for a wide range of tasks.

Any questions?
Would you like to know how these changes will affect your day-to-day work? They won't! Your usual contacts will still provide you with support, answer your questions about the restructuring and look forward to continuing to work together in a spirit of trust.