EMCC European Monitoring Centre on Change

Walter AG

Company/Organisation:
Walter AG

Geographic Location

Country: Germany
Region: Frankfurt am Main, Kreisfreie Stadt; Darmstadt; Hessen
Location of affected unit(s): Roedelheim

Company

Sector: Manufacturing
Manufacture of machinery and equipment n.e.c.
28.41 - Manufacture of metal forming machinery
Number Employed: 3500
Group: Sandvik AB

Employment Effects

Announcement Date: 20-02-2020
Planned Job Reductions min: 200
Planned Job Reductions max: 200
Type of Restructuring: Closure
Employment Effect Start: 20-02-2020
Foreseen End Date: 30-06-2021
Other Job Reduction Measures: 200

Additional Information

As announced on 20. January 2020, the German tool manufacturer Walter AG will close its plant in Frankfurt-Roedelheim by 2021, which will make 200 employees redundant. According to management, the current challenging market development makes the plant’s closure inevitable, so the company can secure long-term operations and profit for the company. Walter plans to relocate production to other plants around the world. The company intends to offer relocation possibilities to some employees. 

Employees, the works council and the German Metalworkers’ Union (IG Metall) were surprised by the company’s decision and criticised the management for making rash decisions, as the company did not post losses in the last couple of years but was able to redistribute its profits. An IG Metall spokesman suspects that the company intends to sell the plant’s property for major profit. Negotiations between the works council and management will be initiated soon.

Walter AG has 3,500 employees worldwide.