ZURICH, March 19 (Reuters) - Swatch Group CEO Nick Hayek has expressed concern about the strength of the Swiss franc, Swiss broadcaster SRF reported, saying the safe-haven currency's appreciation was
Swatch CEO concerned about surge in value of Swiss franc
By John Revill
Impact of Swiss Franc Appreciation on Swiss Industry
ZURICH, March 19 (Reuters) - Swatch Group CEO Nick Hayek has expressed concern about the strength of the Swiss franc, Swiss broadcaster SRF reported, saying the safe-haven currency's appreciation was putting domestic industry at risk.
The franc has recently hit 11-year highs against the euro and has continued to appreciate against the dollar, making Swiss products more expensive abroad and squeezing manufacturers' profit margins.
Swatch CEO's Criticism of Swiss National Bank
Hayek, whose company owns watch brands including Longines, Omega and Tissot, accused the Swiss National Bank of not responding to the appreciation for fear of being branded a currency manipulator by Washington.
Current Strength of Swiss Franc 'Excessive', CEO Says
CURRENT STRENGTH OF SWISS FRANC 'EXCESSIVE', CEO SAYS
"We have nothing against a strong Swiss franc," Hayek told SRF. "But its current strength against all currencies is so excessive that it's becoming impossible to continue manufacturing industrial products in this country."
"My concern is that the Swiss National Bank isn't recognising the problem," he added. "It's remaining silent, fearing that Donald Trump might see it as a currency manipulator and punish it with higher tariffs."
Swiss National Bank's Response
SNB Chairman Martin Schlegel on Thursday repeated the central bank's increased willingness to intervene in foreign currency markets to curb a rapid and excessive appreciation of the franc.
The SNB was in close contact with Swiss exporters and was aware of their problems, he told reporters when asked about Hayek's comments.
Support for Swiss Exporters
"The SNB has great respect for companies that have to hold their own every day on the international market," he said. "We are well aware that this is not an easy task."
Risks for Smaller Manufacturers
Smaller Manufacturers 'Could Be Pushed Abroad', Hayek Warns
SMALLER MANUFACTURERS 'COULD BE PUSHED ABROAD', HAYEK WARNS
Hayek warned that smaller manufacturers could be forced to move production abroad or shut down.
"When industry struggles, the whole country suffers. It's about the social fabric: apprentices, factories, the know-how to manufacture a product in Switzerland. I don't want to do without that," he said.
Swatch Group's Efforts to Recover U.S. Tariffs
Swatch Group was also seeking reimbursement for U.S. customs duties paid under tariffs imposed by President Donald Trump, with potential refunds amounting to tens of millions, Hayek said.
"Everyone wants to get back unjustly paid customs duties. Our branches in America are already working on it, together with our lawyers," Hayek said.
"In the end, we're talking about refunds in the tens of millions, and the chances are good that we'll get it back."
(Reporting by John Revill; Editing by Kate Mayberry and Jan Harvey)
