VAT Group announced today that it will end the current short time work scheme for about 650 production employees at its two manufacturing facilities in Haag, Switzerland effective December 1, 2023. The program was initially approved by the Canton of St. Gallen’s Office for Economy and Labor for a period of three months from June until the end of August 2023. It was then extended by another three months until the end of November 2023.

The end of the short time work scheme is driven by strong demand in the Advanced Industrials business unit. Demand in the Semiconductor business unit and the Global Service segment have stabilized but visibility remains low driven by weak consumer and industrial spending and the uncertainty surrounding the exports of equipment into China. We expect this situation to persist into the first half of 2024 but continue to be optimistic about future growth prospects.

This decision will also allow VAT to ready its production and supply chain capabilities for the expected upcycle, including readiness of new product families and also to drive efficiency programs such as the introduction of a new ERP system in its factories in Switzerland in summer 2024.