German diesel engine manufacturer
Deutz says that concentrating production on one site will enable productivity to be increased and fixed costs to be reduced. Synergies will largely be created from the use of the Ulm plant's infrastructure and from shared overheads.
"The decision to integrate our plant in Übersee into the Ulm plant was not easy for us. But by concentrating exchange engines in Ulm we are laying the foundations for our growth strategy in the Xchange and service business. So from a strategic perspective, this is the right decision for the company," said Dr Helmut Leube, chairman of Deutz's Board of Management.
The closure of the site will affect 157 employees. Deutz's Board of Management and works council will draw up a reconciliation of interests for those affected, as required by German law, and set up a social plan.
"Our aim is to encourage as many people as possible to work in Ulm. To achieve this, we and the works council will be devising working time models tailored to the situation and we will be offering financial compensation for costs such as second homes and travelling expenses," said Dr Margarete Haase, the Deutz Board of Management member responsible for finance, human resources and investor relations.
The relocation of the exchange engine plant will be carried out in stages until the end of 2015.
