FACC scraps dividend and reassess Croatia plans

FACC, owned by China’s Aviation Industry Corporation, is rapidly reassessing its €33 million (US$36 million) project to build an automated, digitized production complex in Croatia. In addition, the company has opted not to pay a dividend for last year.

The situation has come about through the aviation industry’s reaction to the COVID-19 outbreak and, as a result, the company will also be reducing the working hours of many of its employees from April 6 for the next three months.  FACC is responsible for the manufacture of plane parts, predominantly wings, tail assemblies and fuselages as well as engines and cabin interiors for all major plane manufacturers, employing over 3,500 staff in 13 countries across the globe.

“The situation is very uncertain and changes daily or hourly,” Chief Executive Robert Machtlinger said. “We have to find an optimal balance between protecting our workforce… and struggling to achieve the necessary economic stability, secure financial stamina and maintain the trust of our customers,” adding that US$800 million in existing orders was an encouraging sign.

However, as a consequence of such an uncertain future, the Group would refrain from issuing a detailed forecast on its 2020 and 2021 earnings until the summer.

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