Nick Hayek: We’ll keep production in Switzerland

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Swatch Group’s chief executive Nick Hayek has confirmed that the group and its brands will continue to produce watches in Switzerland despite rising labour costs and the strong Swiss franc.

In an interview with Swiss finance newspaper Handelszeitung, Hayek said: "We need and want to produce in Switzerland.” He added that the group will be able to sustain its position and production as it is a “well-organised company”.

This Swiss watchmaking industry and Swiss brands have struggled against the Swiss franc and a number are said to be concerned that they may need to take production overseas to help lower costs with a view to labour, rates and exports.

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Hayek added: “In other countries too the exchange rate, wages, taxes and social insurance will change one day."

Swatch Group’s financial results have remained strong in the past 12 months. It announced its H1 results for 2012 in June reporting double digit growth across both sales and profit, and strong results in its watches and jewellery segment.

The Group’s gross sales were up 14.4% to CHF3.8 billion (£2.5bn), surpassing its already record-breaking H1 figure achieved in 2011.
Sales in the watch and jewellery segment grew by 16.7% to CHF3.4 billion (£2.2bn).

 

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