Looser Holding investing up to CHF 13.5 million in the Coatings Division

At the start of 2014, Looser Holding AG announced that it was focusing its Coatings Division on the three main product groups of wood coatings, packaging coatings and non-stick coatings. This was then achieved through the sale of the Feycolor Group in March 2014 and the metal coatings product area of Feyco AG in May 2014. Looser Holding AG is now launching the next step in the further development of the Coatings Group. In the light of the challenging market situation in the Swiss wood coatings business, Looser Holding AG has reviewed the production capacities of the Feyco locations in St. Margrethen and Urdorf and the production capacity of Schekolin AG in Bendern and assessed the synergy potential.

Feyco AG is specialised in products in the field of wood coating and wood protection agents for industry and commerce. The company has its head office in St. Margrethen, with further locations in Urdorf, Hinwil, Gümligen and Crissier. Schekolin AG, with its head office in Bendern, is specialised in packaging coatings for the interior and exterior coating of materials including metals, plastic, aluminium and glass.

The investments are aimed at exploiting the synergies that exist in the two companies located in the Rhine Valley. To do this, the Looser Group is intending to boost efficiency and productivity and optimise the operating and logistics costs. In the wood coatings product area, the aim is to ensure long-term success, improve competitiveness and secure expansion of the market share in Switzerland, while, at Schekolin AG, the focus is on the international expansion of the packaging coatings business. In addition to this, the competences and range of services available in the wood coatings product area will be expanded.

Realignment

In the context of the realignment, production at St. Margrethen and Urdorf is to be merged at the Schekolin location in Bendern within the next two years. St. Margrethen will continue to operate as an administrative location and a research and development centre, while a competence and training centre will be developed in Urdorf. Activities such as application technology and the sample service, which are currently offered at Hinwil and Gümligen, will be transferred to Urdorf. Crissier will be retained as a depot location. To transfer the Feyco production capacities to Bendern and carry out conversion work in Urdorf, investments of up to CHF 13.5 million are planned in buildings, production facilities and equipment over the next two years.

Through the planned transfer of Feyco's production to Bendern and the exploitation of synergy effects achieved through the closer cooperation with Schekolin AG, a reduction in the Feyco workforce is to be expected over the two years to come. According to the provisional planning, up to 30 jobs could be affected. A consultation procedure has been initiated with the clear intention of configuring the planned workforce reduction in a socially responsible manner.

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For further information please contact:

Tim Talaat, CEO, Chairman of the Group Executive Management, and

Christoph Fierz, CFO

Telephone: +41 (0) 52 244 86 86

Fax: +41 (0) 52 244 86 81

E-mail: info@looserholding.com

Internet: www.looserholding.com