Hermès expands watch production

Even though the watch division, like other providers in the luxury sector, has stagnated or even declined in recent months, the French company is still investing in this segment.

Although watches only account for about four percent of total sales, Hermès has been expanding this segment for decades. Since 2006, for example, the company has been the only watch manufacturer in the world to manufacture its leather watch straps in its own workshop in Brügg.

Far more relevant is the 25 percent stake held since 2006 in Vaucher Manufacture Fleurier (VMF), a manufacturer specializing in watch movement development and construction, which is Pôle Horloger of the Swiss Sandoz Foundation With this investment, Hermès began developing its own calibers. VMF's stake may be increased in the foreseeable future.

In 2012, the company also acquired the dial manufacturer Natéber SA in La Chaux-de-Fonds and in 2013 the case factory Joseph Erard SA in Le Noirmont, which were combined as Les Ateliers d'Hermès Horloger in 2017.

Hermès has now announced a significant increase in production capacity at Le Noirmont, scheduled for completion by 2028. The total area will be 11,000 square meters, and 100 additional employees are to be hired. This underscores the long-term Swiss-made strategy in the watch segment.

The building, designed by Atelier Pulver Architectes, also reflects Hèrmes's commitment to sustainability. It will be constructed from locally sourced materials and equipped with solar panels, a rainwater recovery system, and a green roof. The surrounding garden will also reflect the natural environment of the Swiss Jura Mountains—the cradle of Swiss watchmaking.