Bern February 26 2023: Swiss industrial group OC Oerlikon (OERL.S) forecast lower margins for 2023 as its key polymer business combats rising costs tied to inflation and a slow recovery from COVID-19 lockdowns in China.
The polymer business, the group’s biggest division by sales, has taken a hit as China struggles to rebound after lifting its strict pandemic restrictions. Last year it generated almost two-thirds of its revenues in China.
PVC international prices declined sharply in the last quarter owing to a global demand slowdown on the back of rising inflation before rebounding slightly in December 2022.
The company said it planned to cut 800 jobs from the polymer business, with finance chief Philipp Mueller adding in a call with reporters that the layoffs would mostly affect its assembly and manufacturing plants in Germany.
It expects sales of around 1.4 billion Swiss francs ($1.51 billion) for the polymer unit in 2023 and a further slight decline in 2024, Mueller told reporters.
