Voestalpine to reorganize auto component production in Germany

The Voestalpine Group has announced the reorganization of its German automotive components production facilities due to changes in the market and declining demand.

The plants in Dettingen, Schmelln, Schwäbisch-Gmünd and Böhmkirch will be merged into a single network with each plant’s narrow specialization. However, the Birkenfeld plant will be closed due to financial difficulties, affecting 220 employees. Despite these changes, voestalpine aims to retain around 2,000 jobs in Germany and strengthen its position in the automotive components market.

These changes are aimed at the long-term stability of the company in the face of the economic downturn and the transformation of the automotive industry. The plant in Birkenfeld, which produces steel and aluminum components, has been making losses for several years despite investments and improvement measures. Dettingen is also planning to reduce its workforce by up to a third of its 650 employees. The plant will focus on assembling complex automotive components for leading car manufacturers.

Voestalpine is also implementing efficiency measures at its other facilities in Europe, Asia and South Africa. In the United States, cost-cutting measures are being implemented at the Cartersville plant.

Despite the challenges, voestalpine remains clearly committed to the Automotive Components business unit and our chosen internationalization strategy. However, the planned reorganization measures, including the closure of the location in Birkenfeld, are necessary to secure the long-term prospects for the future of the remaining Automotive Components locations and for the largest possible number of employees in Europe, particularly in Germany. This ensures we can remain a strategic partner for local automotive manufacturers,” says Carola Richter, Member of the Management Board of voestalpine AG and Head of the Metal Forming Division.

Voestalpine recently announced its intention to shut down the cam and sliding element business unit at Camtec’s plant in Linz. The full exit is expected to be completed by the end of the 2025/2026 financial year. This decision was reached amid rising energy and labor costs, as well as massive price pressure from non-European competitors, primarily from China and India.