Finland-based stainless steelmaker Outokumpu has announced that the negotiations regarding its industrial plan have been successfully concluded with employee representatives and unions in Germany.
The industrial plan was originally announced in October 2013, with a target of €100 million annual savings, contributing to the overall annual synergy and cost savings of €450 million in 2017.
According to the agreement with the employee representatives and unions, Bochum meltshop in Germany will be closed in 2015, following a production transfer process that ensures continuation of high quality deliveries to customers after the Bochum closure. Outokumpu will invest €108 million in the Krefeld cold rolling center in Germany between 2014 and 2016. Benrath cold rolling mill is expected to be closed in 2016 after the production transfer to Krefeld has been completed.
All these measures will result in a reduction of 1,000 jobs, thereby bringing the total reduction of jobs to 3,500 jobs globally by the end of 2017.