Siempelkamp Fushun Rendering 800 5fd9620b1e130

Siempelkamp, Workers Negotiate Downsizing

Dec. 16, 2020
The forging machinery builder reached a “socially acceptable balance of interests” with the works council at its Krefeld, Germany, plant, where a new round of job cuts is underway.

Siempelkamp GmbH reached a “socially acceptable balance of interests” in negotiations with the works council representing employees at its Krefeld, Germany, plant, who are affected by a new round of job cuts.

Siempelkamp develops technologies and manufactures machines for forging, rolling, and press forming operations. Its iron foundry at Krefeld casts large-scale components of those systems, and the group also provides engineering services for plants that produce wood panel systems, composites, and rubber.

In August 2020, Siempelkamp cut 260 jobs at Krefeld, citing the COVID-19 pandemic and manufacturing recession for a restructuring program aiming “to sustainably strengthen the company's competitiveness in a difficult global market environment.”

"We expect a lower order volume in the USA and Europe in the current fiscal year. In addition, our core markets have shifted towards the Asian market in the past and coming years," Siempelkamp CEO Dr. Martin Stark explained at that time.

Now, an additional 56 jobs are to be eliminated at Siempelkamp Maschinen und Anlagenbau GmbH, the plant engineering and design division, and another 80 at Siempelkamp Maschinenfabrik GmbH.

These cuts will include early retirements as well as operational downsizing.

"In the negotiations with the works council, two things were particularly important to both sides,” Stark said. “First, finding a socially acceptable solution for those employees affected by the planned personnel adjustment in both companies. Secondly, the creation of a future-oriented and sustainable strategic framework for Siempelkamp in order to be able to adapt the group of companies to the changing market and competitive conditions."

Siempelkamp has been scaling back operations in Germany for several years, cutting 350 positions in 2016-2017, though it emphasized that its headquarters in Krefeld would remain “the heart and mind” of its organization.