Voestalpine reorganizes automotive component business sites in Germany (updated)

Voestalpine AG

18/10/2024 13:27

(Adds context in para 4-8, company's quote in para 6, info on
Dettingen location in para 7 and share move in para 9)
    By Ozan  Ergenay
       Oct 18 (Reuters) - Voestalpine  VOES.VI  will reorganize
its automotive component business locations in Germany,
including the closure of one of the sites, to respond to falling
demand and structural changes, the Austrian specialty steelmaker
said on Friday.
    The plants in Dettingen, Schmoelln, Schwaebisch Gmuend and
Boehmenkirch will form a joint production network, with each
site focused on selected core technologies, Voestalpine said.
    "The aim of these measures is to secure the future of the
automotive supply segment of the Metal Forming Division in the
long term, and with it around 2,000 jobs in Germany," it said.
    Operations in Birkenfeld will be discontinued subject to the
outcome of negotiations with the works council and the IG Metall
trade union, impacting about 220 employees, said the company.
    "Despite ongoing investment and improvement measures, the
long-term slowing in the macroeconomic environment and
associated drop in orders from the automotive industry in the
specific product segment mean that it is no longer financially
feasible to continue operations at the location," it added.
    Around a third of the current workforce of 650 employees in
Dettingen could also be affected by the personnel adjustment,
according to a statement.
        European carmakers are struggling with weak demand and
rising costs, with German automakers, in particular Volkswagen,
facing increased competition in China from local automakers.
  
    Voestalpine's shares were up 3.3% at 1203 GMT.

 (Reporting by Ozan Ergenay, Editing by Miranda Murray)
 ((Ozan.Ergenay@thomsonreuters.com;))