EMCC European Monitoring Centre on Change

Punch Powertrain

Company/Organisation:
Punch Powertrain

Geographic Location

Country: Belgium
Region: Arr. Hasselt; Prov. Limburg (B); Vlaams Gewest
Location of affected unit(s): Sint-Truiden

Company

Sector: Manufacturing
Manufacture of machinery and equipment n.e.c.
28.15 - Manufacture of bearings, gears, gearing and driving elements
Number Employed: 1100

Employment Effects

Announcement Date: 30-08-2019
Planned Job Reductions min: 188
Type of Restructuring: Internal restructuring
Employment Effect Start: 30-09-2019

Additional Information

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.

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