Springs and stabilizers: Management decides to gradually phase-out production site in Hagen

• Production site and Competence Center Hagen to be gradually scaled back

• Management and employee representatives are entering into discussions on a socially responsible reduction of approximately 300 jobs

• Weak automotive industry, higher energy prices, and increased labor costs have severely impacted the site's competitiveness

• Mario Gropp, CEO of the Springs and Stabilizers business unit: “The closure of the Hagen production site is the only responsible solution to stabilize the Springs and Stabilizers business unit in the long term in a difficult environment.”

• Volkmar Dinstuhl, CEO of Automotive Technology:” With the closure of the Hagen site, we are taking another necessary and important step on the path to transforming our automotive supply business.”

The management of the Springs and Stabilizers business unit decided today to gradually scale back production at the Hagen site and close the Competence Center there. As a result, about 300 jobs will be cut in a socially responsible manner over the next two years. The business unit's headquarters will be downsized, allowing 30 to 40 jobs to be retained in Hagen.

The management will now immediately enter into negotiations with employee representatives to reach a binding agreement on a reconciliation of interests and a social plan to regulate the framework conditions for the job cuts.

“Due to the significantly changed conditions in the automotive industry and after thoroughly examining all alternatives, closing the production site in Hagen is the only responsible solution. In dialogue with employee representatives, we will focus on making the closure process as fair and transparent as possible. We will fulfill ongoing customer orders as agreed. We take our responsibility seriously – as is customary at thyssenkrupp,” said Mario Gropp, CEO of springs and stabilizers.

The Hagen site has faced a very challenging business situation in recent fiscal years. Due to the ongoing weakness of the automotive industry in Europe, the plant is significantly underutilized. In addition, the sharp rise in energy prices in Germany, structurally high wage costs, and competition from China are weighing on competitiveness, which is why order intake has declined significantly in recent years. A comprehensive review by management has shown that a turnaround with long-term prospects for continued operations would not have been possible even with drastic cost reductions.

In parallel with the closure of the Hagen production site, thyssenkrupp is pressing ahead with sales negotiations for the Springs and Stabilizers business unit. The aim is for a potential new owner of the business unit to offer better development prospects.

Volkmar Dinstuhl, CEO Automotive Technology: “With the closure of the Hagen site, we are taking another necessary and important step on the transformation path of our automotive supply business. This allows us to respond to the challenging market situation. At the same time we are continuing our efforts to advance other areas, such as our technologically leading component businesses.

The Springs and Stabilizers business unit is part of the thyssenkrupp Automotive Technology segment and supplies well-known carmakers with high-quality, high-performance chassis components. After the business recorded significant losses since the 2017/2018 fiscal year, thyssenkrupp initiated an extensive restructuring and put the business up for sale three years ago. Despite considerable efforts, restructuring and investments, it has not been possible to return the group as a whole to sustainable profitability. The unit currently employs around 3,500 people worldwide.