START OF PRODUCTION AT NEW WITTENBERGE SITE

 The FP Group, the first multi-channel provider for mail communications, has started production at the new site in Wittenberge. The franking machine mymail is the first product that the company will be manufacturing there.

In the next few weeks, the FP Group will also begin production of the first machines of the new Phoenix franking system in Wittenberge, before the start-up of series production in the first quarter of 2012. The FP Group sees great potential in the Phoenix and is thus investing in this new franking platform, which distinguishes itself through countless innovations in the areas of mechatronics, software control and distribution processes. The Phoenix is to replace the franking machines optimail 30 and ultimail 60 and 90 in the mid-market product segment.

“The Phoenix is more than just a franking machine”, explains Hans Szymanski, CEO of FP. “Only with such innovative products can the FP Group achieve success in an intensely competitive market and an economic slowdown as currently seen in our domestic market in Germany. The new manufacturing site in Wittenberge is the crucial precondition enabling the Phoenix and other products to be offered at competitive prices.“

Redundancy scheme for Birkenwerder

The situation at the site in Birkenwerder is shaped by the impending closure of the production site on 31 March 2012. The company is currently deploying additional temporary workers to this site in order to achieve a punctual dispatch of the franking systems. For the 111 employees at the Birkenwerder production site facing redundancy, the total volume of the redundancy scheme was set at approximately EUR 7 million by the conciliation body at the end of August, against the votes of the employers. Francotyp-Postalia has entered into legal action over this decision which, in the Management Board’s view, oversteps the limit of what is economically reasonable for the company. The legality of the decision of the conciliation body will argued before the labour court in mid-November.

Despite this, Hans Szymanski is looking forward: “In the future, the FP Group will have flexible production – an important precondition for global competition.”