Schneider Electric High Voltage (SEHV), a subsidiary of Schneider Electric, is to implement a restructuring plan in order to maintain its competitivity in the global high voltage electrical distribution equipment market, which has declined significantly in the last two years (in South East Asia, Latin America, Europe, etc)
The plan is based on two key actions :
- Commercial redeployment to develop and extend the SEHV product and service offering through a "global solutions" approach with increasing focus on growing markets (China, Taiwan, Mexico and the US)
- A base costs reduction program that should eventually result in 380 redundancies throughout SEHV’s global entities, out of a total 2,800 employees. A redundancy plan proposal concerning 168 jobs in SEHV’s French subsidiary, SEHV SA, has been submitted to the labor unions as part of the legal proceedings. The plan includes measures such as reduced working hours, early retirement and retraining.
These restructuring measures should represent a net extraordinary cost of around 100 million francs to be posted in the 1999 accounts. Schneider Electric confirms its net income growth forecast for the current financial year.