In a significant move, the Metal Forming Division of the voestalpine Group is restructuring its Automotive Components operations in Germany to adapt to changing market dynamics and declining customer demand in the automotive industry. The company has decided to consolidate its production facilities, bringing together the plants in Dettingen, Schmölln, Schwäbisch Gmünd, and Böhmenkirch into a unified production network. This new framework will allow each location to leverage its unique technological capabilities and product knowledge, ensuring a more efficient and targeted production process.
As part of this reorganization, voestalpine has announced the planned closure of its Birkenfeld facility, pending discussions with the Works Council and IG Metall. This decision is primarily due to the site’s inability to remain financially viable in light of decreasing orders and a challenging macroeconomic environment. The Birkenfeld plant, which specializes in manufacturing stamped and formed steel and aluminum parts for the automotive sector, generated revenue of around EUR 50 million in the 2023/24 business year. However, it has struggled with negative earnings for several consecutive years, leading to this tough decision that will affect approximately 220 employees.
Carola Richter, a member of the Management Board of voestalpine AG and head of the Metal Forming Division, expressed the company's commitment to its Automotive Components business. She emphasized that the reorganization is essential to ensure the long-term sustainability of the remaining locations and to secure jobs for as many employees as possible in Germany. Richter underscored that this strategic shift is not only about cost-cutting but also about enhancing voestalpine's role as a strategic partner for local automotive manufacturers.
The Dettingen facility will undergo adjustments as part of the reorganization, with plans to focus on specific technologies in assembly and production of complex safety components for major automotive clients. This shift could impact around one-third of the current workforce of 650 employees at Dettingen. The company intends to work closely with the Works Council to develop a socially responsible solution for affected employees, reinforcing its commitment to supporting its workforce during this transition.
Meanwhile, the overall revenue for the combined production locations of Dettingen and Schmölln reached €395 million in the same business year. This reflects the strategic importance of these sites in voestalpine's production framework, which aims to maximize efficiency while addressing the evolving needs of the automotive sector. The consolidation efforts are also designed to streamline corporate functions, thereby enhancing the operational effectiveness of the Metal Forming Division.
