GENEVA — Firms that relocate from Switzerland because of the strong Swiss franc are misguided, the head of the Swatch watchmaking giant Nick Hayek said in an interview published yesterday.
Speaking to Zurich newspaper Handelszeitung, Hayek insisted that high productivity was more important than low labour rates because other countries could also see their running costs rise one day.
The Bienne-based giant's watches are still made in Switzerland and continue to sell for around 50 francs (41 euros) — the same price as in the 1980s — yet the firm still turns a tidy profit, Hayek said.
Around 90 per cent of the company's profits came from abroad, Hayek said, while 95 per cent of production was in Switzerland.
Conceding that the strong Swiss franc had impacted margins, Hayek nonetheless supported the Swiss National Bank's decision to peg the currency at 1.20 francs to the euro given the "current catastrophic conditions".
Without the central bank stepping in to prevent the franc pushing past the current limit, Switzerland's manufacturing and tourism sectors would be doomed, Hayek said.
He added that the SNB's currency measure also served as an important reminder that manufacturing played a key role in the Swiss economy.
Ceres Power may wind down operations: British clean technology company Ceres Power Holdings Plc said it may have to wind down operations after failing to secure the funds it needs to run its business, sending its stock down as much as 76 per cent.
Ceres said it was also considering a sale of the business or a cancellation of its listing.
Ceres had £10.2 million in cash as of June 30 and had said it needed to raise money by the end of September.
The company, which had revenue of £136,000 for the six months ended December. 31, 2011, is yet to report full-year results.
— AFP/Reuters
Speaking to Zurich newspaper Handelszeitung, Hayek insisted that high productivity was more important than low labour rates because other countries could also see their running costs rise one day.
The Bienne-based giant's watches are still made in Switzerland and continue to sell for around 50 francs (41 euros) — the same price as in the 1980s — yet the firm still turns a tidy profit, Hayek said.
Around 90 per cent of the company's profits came from abroad, Hayek said, while 95 per cent of production was in Switzerland.
Conceding that the strong Swiss franc had impacted margins, Hayek nonetheless supported the Swiss National Bank's decision to peg the currency at 1.20 francs to the euro given the "current catastrophic conditions".
Without the central bank stepping in to prevent the franc pushing past the current limit, Switzerland's manufacturing and tourism sectors would be doomed, Hayek said.
He added that the SNB's currency measure also served as an important reminder that manufacturing played a key role in the Swiss economy.
Ceres Power may wind down operations: British clean technology company Ceres Power Holdings Plc said it may have to wind down operations after failing to secure the funds it needs to run its business, sending its stock down as much as 76 per cent.
Ceres said it was also considering a sale of the business or a cancellation of its listing.
Ceres had £10.2 million in cash as of June 30 and had said it needed to raise money by the end of September.
The company, which had revenue of £136,000 for the six months ended December. 31, 2011, is yet to report full-year results.
— AFP/Reuters
“I can go all over the world with just three outfits: a blue blazer and gray flannel pants, a gray flannel suit and black tie.”
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