The company says that due to ‘very low’ production volumes from its Egerkingen factory, it has seen additional pressures on manufacturing costs lately.
Coupled with this, the company notes that expected volumes of production for the facility are not expected to rise significantly over the coming years, regardless of demand from its target markets. As such, it has decided to close the Egerkingen factory.
“Nestle Skin Health is continuously reviewing and adapting its portfolio, simplifying the organization, reviewing its business models, and assessing its geographic footprint,” it said in a statement.
“The move comes as part of Nestlé Skin Health’s global transformation programme, which includes a review of operations worldwide.”
Plan for ceasing operations
The company has outlined its intention for the closure of the Swiss facility, noting it will take place in several waves over the next 12 to 18 months.
“Nestlé Skin Health intends to transfer manufacturing activities from the Egerkingen site to its other Nestlé Skin Health manufacturing facilities across the world and move its Swiss sales office and the consumer business unit to other locations in Switzerland,” it says.
On the subject of potential job losses, the company acknowledged that it is ‘an uncertain period’ for employees at the facility.
It will endeavour, however, to offer support, and pledges to “work closely with employees to find a solution for every one of them, with meetings starting as soon as possible.”
Nestlé Skin Health
Nestlé Skin Health describes itself as one of the category’s leading companies for science-based solutions for skin, hair and nail health.
“Nestlé Skin Health conducts groundbreaking product research to provide both the healthcare community and the consumer with an ongoing progression of innovative technologies and products to protect, serve and enhance skin health,” the company says.