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.
On 20 July 2012 the US-owned Remy Automotive Hungary notified its employees about the closure of its site in Mezőkövesd, after 80 years of operation. Around 200 employees will be dismissed and the remaining 150 will be offered a job at another site in Miskolc.
Remy produces starter motors and generators for the automotive industry. According to the company’s statement: “Manufacturing volume in Europe continues to be below our previous expectations, thus production in Mezõkövesd could be moved to locations in Mexico, China, South Korea or Miskolc, Hungary, without any significant development costs,”.
The trade union representative stated that the compnay asked a consultancy company to help the dismissed to find another job, but highlighted the fact that the process will be challenging, especially for those who had worked at the production line for 20-25 years. The closure of the factory is expected to bring about additional negative effects on its 100-150 suppliers.
Eurofound (2012), Remy Automotive Hungary, Offshoring/Delocalisation in Hungary, factsheet number 74824, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/74824.