LPKF Shifts Away From Struggling Automotive Industry, Eyes Semiconductor Growth
Machine builder LPKF Laser & Electronics is reshaping its operations due to a decline in orders and a recent profit warning. The company is shifting its focus away from the struggling automotive industry, which has seen significant job losses in Germany. Meanwhile, automotive supplier ZF is also implementing major job cuts.
LPKF's CEO, Klaus Fiedler, has stated that Europe's relevance to the company is diminishing. The firm is now looking to expand globally, particularly in the laser and electronics industry. To achieve this, LPKF is seeking a stronger presence in the semiconductor market and other growth sectors with higher profit potential.
In a bid to diversify its revenue streams, LPKF is moving its welding segment towards medical technology to compete with rivals from China. The company's largest revenue shares currently come from business in Asia, specifically Korea, and North America.
The automotive industry's struggles have led to significant job losses. Around 55,000 positions have been shed in the sector in Germany over the past two years. Bosch, the industry leader, recently announced the elimination of a further 13,000 jobs in Germany. Similarly, ZF, the second-largest German automotive supplier, is cutting every fourth job in its core drive technology division, totaling 7,600 positions. ZF plans to cut up to 14,000 jobs in Germany overall.
LPKF Laser & Electronics is restructuring to adapt to the changing market landscape, particularly the decline of the automotive industry in Europe. The company is seeking growth in new markets and sectors, such as the semiconductor industry and medical technology. Meanwhile, the automotive industry continues to face significant job losses, with ZF being the latest major player to announce substantial cuts.
