Punch Powertrain has announced it will dismiss 188 of its employees at their production facility in Sint-Truiden. Currently only the blue collar workers at the production line will be affected. However, at the end of September the company management will provide additional information. It is not unlikely that some white collar dismissals will be announced then as well. The main reasoning behind the cuts is the fact that the demand for gearboxes in China has dropped significantly in the recent period. The company exclusively delivers to the Chinese market and therefore is forced to reduce its costs by 2022, when a new contract for the French PSA group starts. Trade unions fear additional dismissals but no plans for strikes or other actions have been announced.