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© kathrein Business | October 21, 2015

Kathrein closes down in Noerdlingen

Kathrein is closing its manufacturing plant in Noerdlingen, Germany. The company has had to react to the massive price declines and intensified competition in the market.
Approximately 700 employees from Kathrein Mobilcom in Noerdlingen will be affected by the plant closure, which is scheduled for 30 April 2016.

“This decision is one of the hardest we had to make in the history of Kathrein”, states Frank Ullmann, Chief Operating Officer of the Kathrein Group. “During the last few months we have considered and calculated a number of different options. Unfortunately, it has turned out that series production in Noerdlingen is no longer economically justifiable for us.”

The decision is due to the decrease in demand in the mobile communication business. In the last few months there has been a considerable drop in orders from network operators and providers, which have led to substantial overcapacities on the market. Just like its competitors, Kathrein have had to move its manufacturing abroad to save costs.

The plant closure in Noerdlingen will be carried out step by step. Roughly 200 employees will be made redundant for operational reasons. This is due to lack of orders and will take place as soon as possible. The remaining 500 employees will be let go as an effect due to the closure of business in Noerdlingen by 30 April 2016. All employees will be offered a severance package.
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