SWISS was forced to announce the closure of its Crossarc subsidiary to the company’s employees yesterday…
SWISS was forced to announce the closure of its Crossarc subsidiary to the company’s employees yesterday. Negotiations are still under way with a potential purchaser of the facility’s New Fabrications unit.
Their successful conclusion could save a number of the jobs concerned. The Repair unit will, however, be closed in its entirety. It is hoped to offer alternative employment to all the personnel affected. For those who cannot be further employed, a severance benefits package has been devised.
Crossair Engine Repair (Crossarc) is a repair and service operation specialising in aircraft powerplants. Some 60 per cent of the company’s revenues were generated by its service and repair activities, while 40 per cent derived from the production of new components.
The company sustained a sizable loss last year as a result of low demand for its services. Indeed, Crossair warned in its letter to shareholders of summer 2001 that a decision would need to be taken on the company’s future at the end of the year in view of the continued lack of business. The staff of Crossarc, which is located on the Sulzer site in Oberwinterthur, near Zurich, have been on short-time working since the beginning of 2002. Crossarc currently employs 48
Following intensive efforts, SWISS has now found a possible purchaser for the company’s New Fabrications unit. Talks are currently under way with the interested party. Their successful conclusion would mean the continued employment of some 15 personnel. SWISS has been unable, however, to find a purchaser for Crossarc’s repair business, which will thus have to be closed. Existing commissions will be completed where possible. SWISS aims to offer alternative employment to all the personnel affected. For those who cannot find further employment, a severance benefits package has been devised. The company’s staff were informed of these developments today, and corresponding discussions are now being held.
Crossarc was created in 1999 out of Sulzer-Triebwerke AG, which at the time employed 44 personnel.
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