08 February 2013

LEM to invest CHF 2 million in new production plant in Sofia, Bulgaria

- New low-cost production close to its European customers 
- LEM Bulgaria will hire 50 employees for new production plant 

Plan-les-Ouates - 08 February 2013 – LEM plans to invest CHF 2 million to establish a new low-cost production plant in Sofia, Bulgaria. It expects to start production in October 2013 and hire 50 employees in an initial phase. 

The goal of LEM Bulgaria is to diversify LEM’s low-cost production and increase production capacity close to its European customers. At the same time, LEM will improve the natural hedge of its operations by better matching currencies of sales and cost. The new plant, which will be established in a leased property in Sofia, occupies 4’500 square meters of floor space. 

The new site is to absorb a major part of LEM’s future growth. As a continuation of a strategy initiated in 2004, LEM will continue to relocate production lines from the plants in Machida, Japan and Geneva, Switzerland to low-cost countries. Over the next years, the operations in Japan will be significantly reduced and concentrate on the local Japanese market. In Switzerland, the operations will be progressively reduced and focused on high complexity / high precision products for worldwide markets. In parallel, LEM’s site in Switzerland will be reinforced with continued investment in R&D and marketing. 

François Gabella, CEO of LEM, comments: “The opening of the new production plant in Bulgaria will be a major milestone for LEM’s development. With the new plant we will not only increase competitiveness but we will also considerably reduce foreign exchange risk for the group.” 

LEM is the market leader in providing innovative and high quality solutions for measuring electrical parameters. Its core products - current and voltage transducers - are used in a broad range of applications in drives & welding, renewable energies & power supplies, traction, high precision, conventional and green cars businesses. 

LEM is a mid-size, global company with approximately 1’200 employees worldwide and production plants in Beijing (China), Geneva (Switzerland) and Machida (Japan). 

Source: LEM