FRIWO Enhances Vietnam Production Efficiency, Aims for 2024 Profitability

FRIWO AG has announced strategic changes in its Vietnam production operations as part of its ongoing efforts to streamline operations and focus on core activities. This move involves an asset deal with Group Intellect Power Technology (GIPT) from Hong Kong, wherein GIPT will acquire certain assets and take over two component production sites near Saigon. In turn, GIPT will become a contract manufacturer for FRIWO's products.

With this restructuring, FRIWO anticipates notable improvements in its balance sheet quality and cash flow, aiming for a stronger financial stance by 2024. The reorganization will also see a workforce reduction in Vietnam by approximately 500, leaving FRIWO with a team of around 1,100 employees. This decision underlines FRIWO’s commitment to enhancing cost efficiency and focusing on the production and configuration of e-mobility power systems and power supply solutions.

This transition necessitates the postponement of the publication of FRIWO's audited financial statements for 2023 to April 25, 2024. Despite the delay, FRIWO has confirmed the achievement of its 2023 operating targets and projects a return to profitability in 2024. The company remains optimistic about its growth prospects, especially in Asia, despite the current challenges in demand visibility within its European core business.

CEO Rolf Schwirz expressed confidence in the company's strategic refocusing, emphasizing the expected enhancement in balance sheet quality and cash flow. This restructuring aligns with FRIWO's long-term goals of sustainable and profitable growth.