Production company redesigns press equipment. - Schuler plans to offload parts of their Erfurt facility.
Schuler, a press manufacturer based in Erfurt, may face further scaling down. The company revealed on Thursday that they are contemplating a sale of their welding plant and mechanical production sections due to issues with capacity utilization. According to Joachim Schönbeck, the managing director of parent company Andritz, these areas are greatly affected by underutilization. He also discussed the long-term security of the Erfurt site with Economic Minister Wolfgang Tiefensee (SPD) this week.
Erfurt's Schuler site holds a rich history of over 125 years in heavy machinery manufacturing and boasts a skilled workforce. As per Schönbeck, "It's not feasible for Schuler to attain the necessary utilization levels and profitable operations in these two aforementioned sectors." One of the two areas will continue production under a new owner, while the other will be shuttered. Schuler will still utilize the remaining capacity as a client.
In Tiefensee's statements, he confirmed that "employees in the said areas won't be let go within the next twelve months." He intends to use this time to devise a future for the site and pledged the state's and Thuringian Development Agency's support. "It's regrettable that the fundamental transformation triggered by the automotive industry's structure has brought about underutilization," said Tiefensee.
Schuler currently employs around 380 people in Erfurt, with a global workforce of 5,000. The company has undergone numerous ownership changes and restructuring since German reunification.
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Wolfgang Tiefensee, the Economic Minister of Thuringia and member of the SPD, discussed the long-term security of Schuler's Erfurt facility with the company's managing director, Joachim Schönbeck. Despite contemplating a sale of their welding plant and mechanical production sections due to capacity utilization issues, Schuler's Erfurt site, with its rich history in mechanical engineering and skilled workforce, will continue to operate with reduced capacity in one of the affected sectors.
