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Alstom plant to close the factory in Görlitz and relocate production abroad

Alstom will close the plant in Görlitz by 2026 and relocate structural work to Eastern Europe.

Eulerpool News Oct 4, 2024, 9:11 AM

The French train manufacturer Alstom has announced plans to close the Görlitz plant, which employs around 700 people, by the end of March 2026. The company cites a strategic shift of construction work to Eastern Europe as the reason for the move. The decision is part of a comprehensive restructuring of the German sites, which the employee representatives have been informed about. In addition to Görlitz, the plants in Henningsdorf, Kassel, and Mannheim are particularly affected.

The company stated that they are in advanced talks with an industrial partner about possibly continuing the Görlitz location. The aim is to create a sustainable perspective for industrial jobs. However, no details were mentioned. There has long been speculation about a realignment of the Görlitz plant, which has so far produced double-deck coaches for Israel, among other things.

René Straube, Chairman of the Central Works Council and at the same time Chairman of the Works Council for Görlitz, described the decision as "very bitter" and spoke of an "incredibly tragic" cut. He warned of possible quality losses due to the relocation of production abroad. "We will do everything we can to save the location and secure jobs," Straube emphasized to the German Press Agency.

At the Henningsdorf site, which was previously responsible for the production of new vehicles, no further vehicle projects will be realized. Existing orders will be relocated to the Bautzen and Salzgitter sites. According to Alstom, Henningsdorf is to be expanded into the central location for the growth areas of digitalization and service. The service business, which was previously located in Görlitz, Mannheim, and Kassel, will also be consolidated in Henningsdorf. Alstom emphasized that the workload in Henningsdorf should not be reduced despite the restructuring.

Mannheim will focus on digitalization and development in the future. A plant building in Mannheim is to be sold. Development work and project management for alternative drive technologies will be relocated to France. The Kassel site will remain as a production facility.

On the EURONEXT in Paris, the Alstom share showed a positive trend on Thursday, temporarily trading 2.04 percent higher at 18.73 euros. The planned restructuring is apparently seen by the market as a necessary step to secure the group's competitiveness and make production processes more efficient.

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