The global technology group Voith GmbH & Co. KGaA, Heidenheim/Germany, is planning a comprehensive package of measures for its Voith Turbo division in order to secure the competitiveness and sustainability of the division over the long term. The focus is on streamlining the production base in Germany. The aim is to create central, higher-performing locations where essential parts of production are bundled. The plan is to stop production in Sonthofen and Zschopau by the end of 2020.
“Voith Turbo is confronted by increasing competitive pressure and pressure on margins. At the same time, the need for investment is also constantly increasing in order to assert our position as a technology and innovation leader in the industries supplied by Voith Turbo. With the planned package of measures we want to make Voith Turbo more efficient and effective and thus secure the competitiveness and sustainability of the division over the long term”, said Uwe Knotzer, Chairman of the Executive Board of the Turbo Division.
More specifically the plans include changes in the production network, mainly in Germany. At the Sonthofen and Zschopau sites, where Voith currently manufactures products from the industry and mobility areas, it is not economically viable to continue production. It is therefore intended to stop production in both factories by the end of 2020. The corresponding capacities would be relocated to other existing locations of the division.
The concentration on fewer, but bigger and more distinguished locations would come with a moderate level of job losses in Germany. On balance, a total of around 230 jobs would be lost, and another nearly 370 positions would be relocated to other locations. By 2021 the package of measures should have a positive impact on earnings at Voith Turbo in the low two-digit million range.
Knotzer: “The division management of Voith Turbo is aware that the planned cuts at the affected locations are very painful. And we also recognise the responsibility we have as a company. This is why we want to implement the upcoming changes in close cooperation with the local employee representatives as fairly and as socially acceptable as possible. At the same time, we are firmly convinced that the planned measures are unavoidable in order to keep Voith Turbo on the road to success in the future in a fast changing environment.” (Voith/Si.)