Kathrein Closes Plant in Noerdlingen

Kathrein is closing its manufacturing plant in Nördlingen. The company has had to react to the massive price declines and intensified competition in the market. Approximately 700 employees from Kathrein Mobilcom in Noerdlingen will be affected by the plant closure, which is scheduled for 30 April 2016. Today, the staff were informed about the closure in a town hall meeting.

“This decision is one of the hardest we had to make in the history of Kathrein”, states Frank Ullmann, Chief Operating Officer of the Kathrein Group. “During the last few months we have considered and calculated a number of different options. Unfortunately, it has turned out that series production in Noerdlingen is no longer economically justifiable for us.”

The decision is due to the decrease in demand in the mobile communication business. In the last few months there has been a considerable drop in orders from network operators and providers, which have led to substantial overcapacities on the market. These additionally increase the pricing pressure on the manufacturers of communication equipment. Just like its competitors, Kathrein has been therefore forced to move its manufacturing abroad to save costs. The company runs three plants in Romania, China and Mexico for the mobile communications production in the most important regions.

Employees will be offered severance packages

The plant closure in Noerdlingen will be carried out step by step. Approximately 200 employees, who will be selected according to social criteria, will be made redundant for operational reasons. This is due to lack of orders and will take place as soon as possible. Redundancy of the remaining 500 employees is planned to take effect due to the closure of business in Noerdlingen by 30 April 2016. All employees will be offered a severance package.

“Our employees have done an excellent job since the company was opened in 2000,” pointed out Uwe Thumm, one of the managing directors at Kathrein Mobilcom Noerdlingen. With a view to the competitiveness of the Kathrein Group, the decision to close the plant was, however, unavoidable.

Staff cutbacks also at the company´s headquarters

In September, Kathrein had announced that it would stop series production at its Rosenheim plant and cut 300 jobs. In the future, a lead factory will interlink the areas of innovation and product creation with the production division within the Kathrein Group. Production processes will be tried and tested at the Rosenheim lead factory so that the Kathrein plants around the world can adopt them for a stable series production.





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