Diebold Nixdorf to shutter Hungary plant

Source: Diebold Nixdorf

Diebold Nixdorf, Incorporated (NYSE: DBD) today announced plans to close its manufacturing facility located near Budapest in Gyál, Hungary as part of the company's recently announced DN2020 multiyear business transformation program.

Production activities from the Hungary site will be integrated into other facilities in the company's global manufacturing network.

Diebold, Incorporated opened the Hungary plant in 2006. It assembles and ships automated teller machines (ATMs) and related components, primarily for customers in Europe, the Middle East and Africa, and Latin America. Production and related operations at the facility will be phased out by the end of the third quarter in 2017. The Hungary facility currently employs approximately 150 people. Separation packages will be made available to support impacted employees.

"As with any project of this kind that impacts our people, these are difficult decisions," said Juergen Wunram, senior vice president and chief operating officer, Diebold Nixdorf. "Closing the Hungary plant and consolidating production into larger and more scalable facilities will enable us to be more competitive, agile and efficient for our customers, and help ensure the future success of the company."

Restructuring charges associated with this action include the cost of closing the facility, transferring equipment and impairing idle assets. These costs are fully reflected in the company's previously disclosed guidance for 2017.

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