The investment is part of VBG Group’s strategy to strengthen competitiveness, profitability and operational efficiency. By consolidating production into a purpose-built and modern facility, the Group creates conditions for increased capacity, improved productivity and a more cost-efficient operating structure.

“This is a strategic decision that strengthens our long-term position while ensuring continued high quality in the solutions and services we provide to our customers,” says Anders Erkén, President and CEO of VBG Group.

The new production facility in Dobřany is planned to be completed during the second quarter of 2027, with full production capacity from the third quarter of 2027. In connection with the commissioning of the new facility, production operations at Ringfeder Power Transmission’s facility in Neunkirchen, Germany, will be discontinued. Administrative functions will remain in Neunkirchen.

VBG Group estimates that the investment in the new production facility will amount to approximately SEK 200 million, and that restructuring costs will amount to approximately SEK 20 million.

“Through this investment, we are creating the conditions for a more competitive and sustainable operation over time. The change strengthens the division’s long-term profitability and our ability to meet customer requirements“, says Thomas Moka, Division Manager at Ringfeder Power Transmission.

VBG Group will manage the change in dialogue with affected stakeholders in accordance with applicable legislation and local processes.