Type
Internal restructuring
Country
Germany
Region
Location of affected unit(s)
Leipzig, Saarbr├╝cken
Sector
Manufacturing
Manufacturing Of Machinery And Equipment
Manufacture Of Machinery And Equipment N.E.C.
28.11 - Manufacture of engines and turbines, except aircraft, vehicle and cycle engines

800 jobs
Number of planned job losses
Job loss
Announcement Date
6 June 2018
Employment effect (start)
6 June 2018
Foreseen end date
31 December 2019

Description

As announced on 6 June 2018, the engine block manufacturer Neue Halberg Guss (NHG) will be cutting 800 jobs due to internal restructuring by the end of 2019. This will include the closure of its plant in Leipzig with 600 employees. NHG hopes that it will be able to cut the remaining 200 jobs via natural fluctuation at its plant in Saarbrucken but will not exclude operational terminations. NHG-CEO Gerstung argues that the closure of the plant in Leipzig is inevitable due to market change which has resulted in fewer orders.

Negotiations regarding the closure and a social plan have started.

Currently, NHG has 2,100 employees at its plants in Leipzig and Saarbrucken.


Sources

  • 7 June 2018: Saarbr├╝cker Zeitung (online)
  • 20 June 2018: Freie Presse (online)

Citation

Eurofound (2018), Neue Halberg Guss, Internal restructuring in Germany, factsheet number 94441, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/94441.