Amberg, Germany - Grammer AG, a manufacturer of automotive seating and interior parts, has introduced a package of structural measures at its Haselmühl, Germany, production facility following steep declines in demand since April 2009, the company said recently.
The company highlighted three measures as part of the structural package:
• Introduction of standardised structures for non-production areas
• Implementation of a lean manufacturing system
• Readjustment of capacities in production and non-production areas to revenue levels of Euro 100 million
The Haselmühl plant, which produces seats for tractors, forklifts and construction machinery, and is one of Grammer's largest production facilities, has been "particularly hard hit" following a 50-percent decline in orders and revenue in Grammer's offroad business, the company said. Grammer expects to make Euro 100 million from the site in 2009, compared to Euro 200 million in 2008.
"We have to be prepared to face substantially lower volumes in Haselmühl in the coming years," said Grammer ceo, Rolf-Dieter Kempis. "The only economically viable alternative therefore is to structurally adapt the Haselmühl location for a return to profitability even at revenue levels of Euro 100 million," he added.
"In the short-term, we will be able to largely offset the effects of the order decline through an expansion of short-time work. This means that, as of now, no further layoffs are planned for 2009. Over the medium to long term, however, comprehensive structural adjustments will be absolutely necessary to ensure the ongoing existence of the Haselmühl location."
In March 2009 Grammer announced 184 job cuts at its Kümmersbuck, Immenstetten and Amberg sites, as well as the elimination of 43 temporary jobs at the Haselmühl site, which was implemented in January. The company has cut 2000 jobs since the first signs of the economic crisis, it revealed earlier in the year. (RD)
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