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© flextronics Electronics Production | March 03, 2017

ROB Cemtrex to close Paderborn factory

The ROB Cemtrex Group is expected to close the Paderborn plant by the end of October 2017. The ROB Cemtrex Group had only taken over the Paderborn plant last year following Periscope's insolvency.
"We informed the works council and the employees about the current situation and the resulting necessity. Together with the works council, we now want to find a solution which is as socially responsible as possible under the given circumstances for the current 120 employees. At the moment, talks are being held on whether a transfer company can be set up, in which the employees who wish to do so can be employed and gain further qualifications, "said CEO Frank Bittighofer.

The reason for the decision is a strong decline in sales and, above all, a lack of new orders for the Paderborn plant. "We had to reduce production volumes month after month. Now a level is reached that makes a lasting business economically impossible", says Bittighofer.

One of the most important customers for the Paderborn plant has suffered from the massive slump in demand for telephone systems and accessories. New orders are unlikely to follow in this market segment. "In the medium term, this cannot be offset by other production orders",he continues.

Against this background, the decision to close the factory Paderborn after completion of the existing contracts is ultimately inevitable. "This step is not easy for us. However, we also wanted to do this in the interest of the employees at a time when there are still possibilities. The better the figures are over the coming months, the more scope we have for this. We will then determine the exact details together with the works council."

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August 22 2017 10:36 AM V8.6.0-1