Gurit provides update on strategic alignment

Gurit (Zurich, Switzerland) has provided an update on its strategic realignment and right-sizing measures previously announced in October 2024, which aims to develop stronger positions in marine and industrial markets and ensures long-term competitiveness on the wind market. These initiatives are progressing swiftly, enabling Gurit to offer further insights on future directions and financial implications.

In the wind market Gurit strengthens its focus on Europe, North America, India and APAC (excluding China), and is exiting non-competitive environments. This translates to the following directions:

• Closure of Gurit’s kitting plant in Izmir, Turkey, until end of 2024, as part of its strategy to optimize the kitting footprint with one specialized site per region.
• The decision to stop production during Q1 2025 at the carbon fiber pultrusion plant in Chennai, India, and to close the carbon fiber pultrusion plant in Middelfart, Denmark, in Q2 2025. Opportunities for the pultrusion business in Chennai are being explored, as current adverse market conditions are foreseen to improve.

Gurit says these decisions will strongly negatively impact net sales but will strengthen its profitability and underline the continuous effort undertaken to focus on profitable growth in the upcoming wind market uptake.

In marine and industrial markets, Gurit reinforces its organization and footprint and records first successes substituting wood products with PET from recycled bottles in office furniture and recreational vehicles markets:

• Over the past 3 years Gurit has significantly strengthened its sales and technical organizations across North America and Europe.
• A finishing center was acquired in Dallas, Texas, on Feb 29, 2024, with these same services now being developed in Falces, Spain.
• Gurit signed an agreement projected to generate high single-digit million CHF sales within 2 years, through the replacement of wooden products by Gurit’s Kerdyn PET. 
• The merchant marine market has experienced an unprecedented high order level where Gurit has developed a leadership position over the past 2 years for particularly large molded parts.

Expectations for marine and industrial sales are already above one third of total sales and above half the adjusted operating profit in 2025.

Gurit expects overall restructuring and impairment expenses of around CHF 40 million (~$44.18 million), including the previously communicated CHF 10 million (~$11.04 million) related to the closure of its production site in Middelfart, Denmark. The restructuring and impairment expenses will be mostly recognized in Gurit’s 2024 financial results. Of this total, around CHF 16 million (~$17.67 million) represent impairment charges.

Additionally, the decision to discontinue its carbon fiber pultrusion business leads to a cash and equity neutral goodwill recycling of around CHF 70 million (~$77.32 million) in the group’s income statement in 2025 as required under Swiss GAAP FER. Another consequence of discontinuing this business leads to a cash neutral impairment of part of the investment in Fiberline, along with corresponding loans, in the Gurit Holding AG standalone financial statements.

Gurit reaffirms its full-year sales guidance of around CHF 435 million (~$480.66 million). The adjusted operating profit margin is expected to be at 6-7% (previously 5-8%).