Competition is increasing

Schaeffler closes plant in Lower Austria: 460 jobs in jeopardy

The headquarters of automotive and industrial supplier Schaeffler in Middle Franconia, Germany

(Bild: APA/dpa/Pia Bayer)

The Lower Austrian site of automotive and industrial supplier Schaeffler is on the brink of closure - around 450 people are employed in Berndorf. The company is cutting thousands of jobs across Europe. A plant in England is also being closed. 

The plant in Berndorf should be in operation by the end of the year - the closure will be gradual and social plans will be worked out with the workforce, Schaeffler said.

Austria spokesman Josef Kalina referred to the great efforts made by the Group in recent years to secure the Berndorf site despite the difficult situation. Schaeffler currently manufactures wheel bearings and wheel hub modules as well as transmission bearings in the industrial town in Lower Austria. These are primarily used in heavy commercial vehicles.

Mikl-Leitner now sees it as the duty of the next government to take "clear, effective measures for the economic upturn in Austria".

(Bild: APA/GEORG HOCHMUTH)

Provincial captain: "Long list of bad news"
"We are in contact with the Group's management. The AMS Lower Austria must now provide the best possible support to the affected workers", reacted Johanna Mikl-Leitner (ÖVP), Governor of Lower Austria. The news of the closure of the plant in Berndorf "joins a long list of bad news for Austria and Europe as a business location". Lower Austria is painfully feeling the effects of Europe's competitive weakness. Numerous export-oriented companies have their backs to the wall.

Companies under pressure due to competition from Asia
"These sectors are subject to strong fluctuations in demand as well as very high cost and price pressure due to increasing competition from Asian manufacturers on the European market. Due to the comparatively small size of the location, these fluctuations are difficult if not impossible to plan for and cushion in an economically sensible manner," Schaeffler emphasized on Wednesday.

(Bild: APA/AFP)

At the beginning of November, Schaeffler announced the reduction of 4700 jobs in Europe, 2800 of them in Germany. At that time, the further procedure at Berndorf was left open. The job cuts announced at the beginning of the month corresponded to around 3.1 percent of the total workforce.

However, some jobs would also be relocated within Europe or to non-European countries, meaning that Schaeffler expects a net reduction of 3700 jobs. 

Two of the five European locations are to be closed completely. In Germany, the large sites in Herzogenaurach, Schweinfurt, Regensburg and Homburg (Saar) will be particularly affected. One plant in China is to be closed completely and the Hamelin site could soon be sold. The package of measures will be implemented between 2025 and 2027. The aim is to save 290 million euros per year from 2029.

Relocation to "more economical locations"
This Wednesday morning, the Group management announced: "In the Bearings & Industrial Solutions division, it is planned to discontinue production at the Berndorf site (Austria)." The sharp rise in material, energy and personnel costs in recent years could not be offset by further price adjustments to customers. "In future, the products are to be manufactured at more economical locations in the production network in Europe, China and Asia," Schaeffler said.

The locations in Kysuce (Slovakia) and Brasov (Romania) will take over production capacities, but will also be affected by staff reductions, the automotive supplier emphasized today. The production of clutches in Sheffield (England) is to be discontinued and transferred to other locations within and outside Europe.