International. Nidec Corporation announced that the Company has entered into a definitive agreement with Secop Austria, on March 31, 2020, whereby Nidec will acquire Secop's Delta production line ("the transaction") through the company's Nidec Global Appliance Italy subsidiary and its Austrian company, as detailed below.
With this transaction, Nidec and Secop intend to preserve as many jobs as possible at the site in Fürstenfeld, Austria. Nidec will assume approximately 40 employees for the production of domestic refrigeration compressors on the Delta line and has already hired 47 employees for the production of motors for washing machines and dishwashers.
In addition, Secop will retain and strengthen its group's headquarters in the Fürstenfeld area and thus retain more than 80 employees. As a result, more than 170 of the current 300 jobs will be saved at the Fürstenfeld site. For the remaining employees, Secop offers socially responsible solutions.
Secop will transfer its second Austrian production line for the production of Kappa compressors, which was not for sale, to its European production facility in Zlaté Moravce, Slovakia. It was confirmed between the parties that for various reasons, including competitive issues, the Kappa line is not for sale to Nidec.
As described in "Nidec sells its Secop compressor business to ESSVP IV advised by Orlando Management", on April 22, 2019, Nidec's compressor business was sold to Secop as a condition of the European Commission's approval of Nidec's acquisition of Whirlpool in July 2019. Nidec remained active in the domestic compressor business as a result of the acquisition of Embraco. Nidec realized that Secop Austria would suspend its operation in Fürstenfeld after Secop's press release of October 22, 2019 and intended to offer Delta's production line for sale. In light of Nidec's business strategy and economic logic in Europe, and its confidence in the Fürstenfeld workforce, Nidec decided to invest more in Fürstenfeld and execute the Transaction with Secop Austria.
