Tridonic Sharpens Focus on LEDs and Announces Withdrawal from the Magnetics Sector

With the withdrawal from the magnetics business announced today, Tridonic is also ensuring a smooth transition for its customers, who have the option of placing final orders until November. At the same time, the Tridonic sales organisation will also be supporting customers as they convert to more efficient electronic ballasts. “Today’s decision means that we will be able to focus more strongly than ever on LED technology,” said Tridonic CEO Alfred Felder. “Over the 2012/13 financial year we were able to increase the proportion of revenue accounted for by LED products to 18.9 percent. Right now we are about to launch a new generation of LED converters in what will be one of our most important core projects at Tridonic in 2013/14.”

For several years now the ongoing decline of magnetics technology has been reflected in falling revenue: between the 2007/08 and 2012/13 financial years, revenue from the sale of magnetic ballasts fell by 60 percent. In the 2012/13 financial year, magnetics accounted for just 9.4 percent of Tridonic’s total revenue of EUR 377.7 million. In view of the poor energy efficiency of magnetic ballasts, the EU has acted through 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. 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,” said Tridonic CEO Alfred Felder.

Withdrawal from the magnetics business will also mean the closure of two Tridonic production plants located in Fürstenfeld, Austria and Melbourne, Australia, with the loss of 102 jobs in Fürstenfeld and 49 in Melbourne. Tridonic management will be working closely with the employee representatives in Austria and the trade union in Australia to arrive at balanced solutions for the affected employees As an alternative to closure of the Melbourne factory on 30.12.2013, we are currently engaged in intense negotiations with a potential investor who will continue to employ the majority of the workforce in the event of a takeover. No decision has yet been made in this respect.