Companies will disappear from the Brandenburg map

Economic policy - Companies will disappear from the Brandenburg map

Brandenburg's Minister of Economic Affairs Jörg Steinbach expects the economy in Brandenburg to develop positively overall in 2024 - but also sees problems, particularly in the automotive supplier sector. The SPD politician told the German Press Agency in Potsdam that he expects the economy in Brandenburg to continue to develop positively in 2024, contrary to the general national trend.

Nevertheless, small and medium-sized companies in the automotive supply industry in particular, which supply parts for combustion cars, for example, and are unable to make the transition to electromobility, could face problems. "I fear that some companies will disappear from our Brandenburg map," says Steinbach.

With a view to the expected positive development, he said that further companies had been established in 2023 that were not yet reflected in the good balance sheet, such as the commissioning of a BASF factory in Schwarzheide. Tesla also wants to expand its production, and 400 jobs will be added in January thanks to the railroad plant in Cottbus. The minister said that he expects industrial settlements to be established in 2024 as well.

According to statistics, Brandenburg's economic output grew more strongly than in any other federal state in the first half of 2023. Price-adjusted gross domestic product increased by 6 percent compared to the same period last year. The economy weakened across Germany in 2023, with no rapid recovery in sight.

A possible relocation of the Stuttgart-based car manufacturer Porsche was recently discussed for southern Brandenburg. However, the Minister of Economic Affairs has so far refused to comment on this. According to information provided by Porsche in the fall, the construction of another battery factory in addition to the site in Baden-Württemberg was to be examined. In the summer, the chemical giant BASF commissioned a production plant for cathode materials as a basic material for e-car batteries in Schwarzheide.

Steinbach also referred to the difficult situation of tire manufacturer Goodyear, which plans to close its tire production in Fürstenwalde by 2027. A total of around 750 jobs are to be gradually eliminated from 2025. The state government is committed to maintaining the tire division at the traditional Fürstenwalde site in the Oder-Spree district. A working group is to begin its work in January.

The rubber industry in Germany has a structural problem that is not limited to Goodyear, said Steinbach. According to Steinbach, higher raw material prices and more expensive supply chains as well as increased energy costs put the industry at a considerable disadvantage compared to locations in South East Asia. "It will be very difficult to have a positive impact on the industry."

Even the option of producing tires for the nearby Tesla plant, which has been brought up by the trade union in particular, would probably not be the hoped-for "game changer" that would improve the location's situation. This is because manufacturers do not earn much money from the initial fitting of cars with tires per se, as the automotive industry is putting a lot of pressure on prices, said Steinbach. It only becomes profitable when drivers later decide to replace the tires. Moreover, the decision as to where Tesla sources its tires from is made by the company alone.