Thyssenkrupp Auto Parts Plant Closure: Hundreds Jobless
- Thyssenkrupp Automotive, a division of the German multinational conglomerate, is set to shutter its automotive springs production facility in Hagen, North Rhine-Westphalia, according to a company declaration.The closure,...
- Approximately 300 employees will be affected by the plant's closure, with only 30 to 40 positions expected to remain.
- Thyssenkrupp Automotive attributed the decision to a confluence of factors, including a downturn in the automotive market, soaring energy prices, and elevated labor costs.These factors, the company stated,...
Thyssenkrupp to Close Hagen Automotive Springs Plant, Citing Economic Pressures
Thyssenkrupp Automotive, a division of the German multinational conglomerate, is set to shutter its automotive springs production facility in Hagen, North Rhine-Westphalia, according to a company declaration.The closure, first reported by the Westfalenpost, will occur gradually over the next two years.
Approximately 300 employees will be affected by the plant’s closure, with only 30 to 40 positions expected to remain.
Decline in Auto Sales, High Energy Costs Blamed
Thyssenkrupp Automotive attributed the decision to a confluence of factors, including a downturn in the automotive market, soaring energy prices, and elevated labor costs.These factors, the company stated, have substantially eroded the Hagen plant’s competitiveness, especially when compared to manufacturers in countries like China with lower production costs. The company noted a corresponding decrease in orders in recent years.
The company concluded that a long-term turnaround was not feasible, even with drastic cost-cutting measures.
mario Gropp, Managing director for Springs and Stabilizers, stated, “Given the significantly changed conditions in the automotive industry and after a thorough examination of all alternatives, the closure of the Hagen production site is the only responsible solution.”
globally,thyssenkrupp’s springs division employs around 3,500 people. The division supplies well-known automotive manufacturers with chassis components.
The springs unit experienced ample losses in the 2017/2018 fiscal year. Subsequently, the unit was offered for sale, but a buyer has not yet been found.
The German automotive industry is currently facing notable challenges. In the first quarter, profits for major automakers declined sharply. Volkswagen’s profit decreased by nearly 41% to 2.19 billion euros, while Mercedes-Benz saw a similar decline of approximately 40%, with profits falling to 2.3 billion euros.
Thyssenkrupp to Close Hagen Automotive Springs Plant: Your Questions Answered
This article provides a complete overview of the closure of Thyssenkrupp Automotive’s springs production facility in Hagen, Germany, based on the provided facts.We’ll address key questions and explore the implications of this decision.
What’s Happening with the Thyssenkrupp Plant in Hagen?
Thyssenkrupp Automotive is closing its automotive springs production facility in Hagen, North rhine-Westphalia, Germany. The closure will occur gradually over the next two years.
why is the Hagen Plant Closing?
Thyssenkrupp Automotive cited several factors for the closure:
Downturn in the Automotive Market: A decline in the demand for automobiles.
Soaring Energy Prices: Increased energy costs impacting the plant’s operations.
* Elevated Labour Costs: High labor expenses affecting the plant’s competitiveness. These factors negatively impacted the competitiveness of the Hagen plant.
how Many Employees Will Be Affected?
Approximately 300 employees will lose their jobs due to the plant closure. Only 30 to 40 positions are expected to remain.
What Did the managing Director Say About the Closure?
Mario Gropp, Managing Director for Springs and Stabilizers, stated that the closure was “the only responsible solution.” He cited the significantly changed conditions in the automotive industry as the reason, along