Benteler plans to gradually move Bottrop’s production to the plants in Paderborn and Neuhaus Castle. That could create up to 100 new jobs. On the other hand, up to 195 jobs are also to be cut at the two OWL locations.
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On the other hand, up to 195 jobs will be lost in Paderborn and Neuhaus Castle, particularly in administration, up to 90 in the Dinslaken plant and up to ten in Lingen. According to the group, the difficult market situation with global overcapacity, falling prices and trade barriers makes it necessary to adjust the strategic orientation and in particular the capacities. That’s why Benteler announced the job cuts three weeks ago. The company has now specified the plans for the division to be “competitive and future-proof”.
Concentration of production
In addition to optimizing the range and sales with a focus on Europe as the core market, a more efficient plant network in Germany is an essential part of the package of measures. The production capacities and also the costs would have to be adjusted to the changed market requirements. Against this background, after examining all options, the decision has now been made to abandon the relatively small plant in Bottrop with an annual capacity of 30,000 tons in the medium term. Despite all past efforts, the location cannot be operated profitably in the current market environment, even at full capacity, says a group spokeswoman.
The concentration of the production of drawn steel tubes in Neuhaus Castle and welded tubes in Paderborn is intended to make these two locations even more competitive through volume advantages. Mostly in production, the transfer of capacities from Bottrop would create up to 100 new jobs. The extent to which employees affected by the planned job cuts can switch to these jobs should, in addition to the question of suitable qualifications, also result in discussions with employee representatives. A reduction in capacity is also planned in Dinslaken, where seamless steel tubes are produced.
The job cuts should be implemented in a socially responsible manner – for example through voluntary severance programs, partial retirement and fluctuation – explains Tobias Braun, CFO. “Our goal is to use effective measures to make the steel tube division in Germany future-proof and thus to secure the majority of jobs in Germany.” Sales manager Christian Wiethüchter adds that the “necessary respect” with the employees is at the center of all necessary steps .
Site security contract until the end of 2021
“Benteler is very aware of the responsibility as an employer. We carefully examined all options, ”said group spokeswoman Birgit Held. “We want to use the time now to prepare the employees for the upcoming changes and to support them.”
A redundancy agreement concluded in 2016 with IG Metall precludes operational layoffs until the end of 2021. “We stick to contracts,” says the spokeswoman. The company also wants to talk to the union about a possible adjustment.
A first exploratory talk is planned for next week, says Carmelo Zanghi, managing director of IG Metall Paderborn. The planned closure of the Bottrop plant made him sad. “This contradicts what we had agreed in 2016, namely the establishment of a plant network in which all locations will have a long-term existence,” Zanghi told WESTFALEN-BLATT.
The division’s two foreign plants in Switzerland and the United States are largely excluded from the ongoing realignment. The US plant, which was only put into operation in 2015, is developing positively and production will continue to ramp up.
Parallel to the restructuring in the steel tube area, Benteler is also running a job reduction program in the even larger automotive technology division.
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