Swatch fire strikes at "heart" of watch mechanism production

A fire has destroyed one workshop and damaged another at Swatch Group's (UHR.VX) watch mechanism subsidiary, the Swiss firm that has a near monopoly on the supply of mechanisms to other watchmakers said. Swatch Chief Executive Nick Hayek told Swiss radio on Sunday that the blaze had struck at the "heart of production" at ETA Manufacture Horlogere and the impact on output would be examined more closely on Monday. Hayek said the Swiss watchmaker, known for its colorful plastic timepieces and high-end Omega brand, had other factories it could fall back on. ETA is the world's biggest supplier of watch "movements", the internal mechanisms that drive the moving parts of a watch, and Swatch counts high-profile luxury groups Richemont (CFR.VX), LVMH (MC.PA) and Hermes (RMS.PA) among its customers.



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