Tridonic is pulling out of the magnetic ballast and transformer business in response to declining sales and incoming EU restrictions on inefficient magnetic technology.
The company said it will cease operating in this sector from 30 December after revenue from sales in magnetic ballasts fell by 60 per cent between the 2012/13 and 2007/08 financial years. In 2012/13, electronic ballasts accounted for only 9.4 per cent of Tridonic’s total revenue of EUR 377.7m.
The move will mean the closure of two factories in Furstenfeld, Austria and Melbourne, Australia. The job losses will total 102 in Furstenfeld and 49 in Melbourne. Tridonic’s decision was also made in response to the EU’s move via the Ecodesign Directive ErP, to impose restrictions on the sale of these components from 2017 onwards.
“For several years now we have known that it was only a question of time before a pullout from magnetics technology would take place,” said Tridonic CEO Alfred Felder. “In our efforts to secure the future of Tridonic in this decisive phase of the technology shift to LEDs, this is the right time to make a coordinated withdrawal from the magnetics sector. Of course we regret this step in view of the employees who are affected. Through their commitment they have played their part in Tridonic’s success for many years. We are not only grateful for this but also want to assure them that we will live up to our responsibility towards them in full,” he added.
The company said Tridonic’s customers can place final orders for magnetic ballasts until November.
