Austrian steelmaker Voestalpine AG has announced that it will restructure its auto component unit in Germany, due to the changing market conditions and falling demand.
Accordingly, the company will merge its Dettingen, Schmölln, Schwäbisch Gmünd and Böhmenkirch plants to create a joint production network. However, the Birkenfeld plant, in which ready-to-install stamped and formed steel and aluminum parts for the automotive industry are produced, will be shut down since it is no longer financially feasible to operate due to a drop in orders from the automotive industry, despite ongoing investment and improvement measures.
Voestalpine also stated that it is taking measures at its other auto component plants in Germany, along with those in Asia and South Africa, and that it is implementing a program to reduce costs and raise efficiency in the US.