EMCC European Monitoring Centre on Change

Benq-Mobile

Company/Organisation:
Benq-Mobile

Geographic Location

Country: Germany
Location of affected unit(s): München, Kamp-Lintfort, Bocholt

Company

Sector: Manufacturing
Manufacture of computer, electronic and optical products
26 - Manufacture of computer, electronic and optical products
Number Employed: 3100
Group: BenQ

Employment Effects

Announcement Date: 02-10-2006
Planned Job Reductions min: 3000
Planned Job Reductions max: 3000
Type of Restructuring: Bankruptcy/Closure
Employment Effect Start: 01-01-2007
Foreseen End Date: 31-12-2006

Additional Information

On 1 January 2007 the insolvency proceedings of BenQ Germany, the mobile phone manufacturing subsidiary of Taiwan based BenQ, were opened by the Munich administrative court. Negotiations with a potential investor broke down at the last weekend of December 2006. The company’s head quarter at Munich and the two manufacturing plants at Kamp-Lintfort and Bocholt will stop operations in brief. The search for a new investor will be continued, according to the insolvency administrator. The insolvency ends the brief history of mobile phone manufacturing in Germany. In the beginning of the 1990s Siemens started operations competing with Bosch, Alcatel and Philips. Whereas piece rates and German market shares increased, Siemens is said to have lost track on global competitors such as Motorla, Nokia and Korean competitors neglecting new product trends. Siemens German mobile phone manufacturing subsidiary was in critial shape when it was sold to Taiwan-based electronic company BenQ in 2005. After BenQ Mobile Germany faced increasing difficulties, Taiwanese parent company BenQ stopped investing in its German operations on 28 September 2006. On 30 September BenQ Mobile Germany officially filed for insolvency at the administrative court in Munich. In fall 2006 BenQ Germany did still employ a workforce of 3,000. A collective agreement prevented direct dismissals until 31 December 2006. On 3 January 2007 it was announced that 500 employees quit their jobs and 2,305 employees were transferred to two job creation companies providing training and support to find new employment. The measures will last till the end of 2007. The employees will be paid by the Federal Employment Agency (short-time allowances). Siemens agreed to co-finance the operations of the job creation companies. Mother company BenQ had rejected financing any supportive measures. The remaining workforce of about 200 is employed to terminate operations. The case has affected the sector. Several suppliers announced job cuts.

Active labour market policy measures are supported by the European Globalisation Adjustment Fund (EGF).