Restructuring events
European Restructuring Monitor (ERM)
The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
As announced on 20. January 2020, the German tool manufacturer Walter AG will close its plant in Frankfurt-Roedelheim by 2021, which will make 200 employees redundant. According to management, the current challenging market development makes the plant’s closure inevitable, so the company can secure long-term operations and profit for the company. Walter plans to relocate production to other plants around the world. The company intends to offer relocation possibilities to some employees.
Employees, the works council and the German Metalworkers’ Union (IG Metall) were surprised by the company’s decision and criticised the management for making rash decisions, as the company did not post losses in the last couple of years but was able to redistribute its profits. An IG Metall spokesman suspects that the company intends to sell the plant’s property for major profit. Negotiations between the works council and management will be initiated soon.
Walter AG has 3,500 employees worldwide.
Eurofound (2020), Walter AG, Closure in Germany, factsheet number 100057, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/100057.