The ups and downs surrounding the Heating Act are taking a toll on heat pump manufacturers. The German heating technology manufacturer Vaillant plans to cut around 700 administrative jobs worldwide, including 300 in Germany. Forced layoffs are to be avoided. The aim is to adapt the company to the new demand situation and future market and customer requirements, says the family business from Remscheid.
Demand for heat pumps initially soared, but due to uncertainties surrounding the new heating legislation, many ordered fossil fuel heating systems towards the year's end. The demand for devices crucial to the heating transition collapsed. This development also had consequences for Vaillant. The European market for heating technology was about ten percent below the previous year's level last year. This trend continued in the first few months of 2024.
The job cuts at the Vaillant Group mainly affect the Remscheid location and are to be carried out "as soon as possible". Open positions will not be refilled, and there are plans for early retirement arrangements as well as a voluntary severance program. Discussions with employee representatives about the implementation of the measures are already underway.
Despite economic challenges, Vaillant increased its group sales by three percent to 3.8 billion euros in 2023. The company did not disclose its profit but emphasized that it is a profitable business. Vaillant was able to increase heat pump sales in Germany more than in Europe, although the share of heat pumps in Germany is significantly lower than in other European countries.
Vaillant Expects Increasing Demand for Heat Pumps in the Medium and Long Term. "The funding conditions are already very attractive in many European countries," explained CEO Norbert Schiedeck. Since 2016, Vaillant has focused on the heat pump business. Since then, the number of employees has grown by 5,000, including 1,500 in Germany alone. The company plans to open a new factory for the production of electronic components at its headquarters in Remscheid this fall.
Recently, Vaillant made headlines with the expansion of its production in Eastern Europe. A mega-factory for heat pumps was built in Slovakia. There is some fear in the industry about the relocation of important production abroad. In total, the Vaillant Group has locations in about 20 countries and employed 17,500 people worldwide at the turn of the year, of which around 5,000 are in Germany. Around 4,300 people work at the main site in Remscheid, most of them in administration.
