Schuler strengthens international sites and reduces capacities in Germany

The executive board of Schuler AG has adopted a program of measures aimed at adapting operating capacities in Germany to the changed competitive conditions and increased pressure on costs. The main reason for the adaptation measures is that demand for fully automated press lines, mechanical presses, servo technology, and forging has been steadily shifting away from Germany and Europe and toward Asia in particular. This trend is set to continue across all customer groups, and the company expects about 80 percent of press line orders will come from the foreign production facilities of car manufacturers in the future.

The plan is to close new machine production at the head office in Göppingen, Germany, while maintaining field service, on-site assembly, R&D, and engineering there. The company also will reduce capacities for manufacturing, on-site assembly, and in-house assembly in Erfurt and other Germany sites. Production will be increased at existing plants in China and Brazil, and vertical integration across all divisions will be reduced.

These changes are expected to result in the elimination of about 500 jobs in Germany.