Swatch Group ups its investments in its watch manufacturing facilities in Switzerland

Biel / Bienne (Switzerland), July 18, 2000 - To meet the steadily growing demand for the components that go into luxury mechanical watch movements, the board of directors and managing board at Switzerland’s Swatch Group —the world’s leading watch manufacturer and principal supplier to the entire Swiss watch industry— have approved a further investment program, designed both to increase its manufacturing capacity and to expand its development capabilities in luxury watchmaking. These investments will among other things finance the construction of a second balance-spring production unit in Fontaines (canton of Neuchâtel), scheduled to start production in a year.

Following the acquisition of the Breguet watch brand, Nouvelle Lémania and Valdar, an important event in Swatch Group’s luxury-products development, and the purchase of Universo, the world’s largest specialist maker of watch hands, this investment program will reinforce Group resources and capacities in luxury watchmaking and the development of movements and components. It is furthermore designed to build up the existing infrastructures of its 52 production centers’ 152-plus factories and workshops, mostly in Switzerland, and including Nivarox-FAR, Frédéric Piguet, Nouvelle Lémania, ETA, Breguet, Blancpain, Hatot, Omega and Swatch.

Headquartered in Le Locle, Nivarox-FAR is the sole Swiss manufacturer of balance springs. Its more than 600-strong workforce makes sets of movement-regulating components in factories located in Le Locle and Fontaines (both in the canton of Neuchâtel) and in Saint-Imier (canton of Bern). Twenty million Swiss francs will be required for the construction in Fontaines of a second production unit to turn out balance springs. It will feature the latest and finest manufacturing processes, ensuring that the Swiss watch industry’s main supplier is in a position to meet without delay the growing demand for such crucially important parts —whose production demands exceptional skill and know-how backed by both traditional and pioneering technological facilities.

Other, even more substantial investment programs are presently being prepared and will be announced later this year. They focus on various production centers (for watchmaking and watch components, jewelry and accessories) as well as on distribution at the wholesale and retail levels. This program represents Swatch Group’s most important investments in Switzerland since its inception.

With its expanding range of exclusive products turned out by such leading brands as Swatch, Omega, Breguet, Blancpain, Rado, Longines and others, Swatch Group has an obvious interest in the steady growth of the art of watchmaking and of its most sophisticated and promising technologies.

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Swatch Group ups its investments in its watch manufacturing facilities in Switzerland