Mann+Hummel Group, a global market leader in filtration technology, has announced that its plant in Ludwigsburg will no longer accept any new production orders.
The German group said existing production activities will be either phased out or relocated.
The specific timetable for the closure will be agreed in cooperation with customers and employee representatives, said the statement from the company.
It will work in close and trusting cooperation with the negotiation partners to arrange socially responsible solutions for the staff at the Ludwigsburg plant. Around 400 jobs at the factory are currently set to be affected by the decision, it stated.
Mann+Hummel pointed out that it is continuously reviewing its production sites to ensure its ability to meet evolving customer needs.
Over the course of these strategic considerations, it was determined that the competitiveness of the Ludwigsburg production facility cannot be maintained, it stated.
"This has been an out most difficult decision – we have been producing in Ludwigsburg since 1954. However, this was a necessary measure to ensure the company’s future," said the Chairman of the Supervisory Board, Thomas Fischer.
"Of course, the company headquarters with the research and development center will remain here and we will continue to invest in the technology center. We stand by the Ludwigsburg location," he stated.
Hanno Höhn, Chief Supply Chain Officer and Labor Director, said: "As an international company, Mann+Hummel is not only responsible for the Ludwigsburg site."
"In order to remain competitive in the medium to long term and to safeguard the future of the company with 22,000 employees worldwide, we need to make this adjustment to our production network," observed Hohn.
"Among other components, fuel, oil and air filter systems for automotive original equipment are produced in Ludwigsburg. The company will ensure a smooth transition for its customers and suppliers at the affected site and the receiving factories," he added.-TradeArabia News Service