© Haldex General | January 24, 2020
Haldex Heidelberg staff urges management to reconsider the closure
It was back in October of 2019 that Haldex announced that it was streamlining its production in Europe, a decision that would see the move of production from Heidelberg in Germany to Szentlörincskáta in Hungary.
Haldex stated that the Group’s European region had not managed to increase the profitability to a level that met expectations. The company also pointed to the expected economic downturn and the cost level in Germany as factors that led to the decision which would ultimately lead to the factory in being shut down. In total, 100 people will be affected by the shutdown. Out of these, 17 employees will remain at Haldex since they possess regional and global positions located in Germany. Fast-forward to January 2020 and the Staff Works council of Haldex GmbH Heidelberg publishes an open letter to Helene Svahn, President & CEO Haldex and all members of the management group, in which they state that the decision to close the Heidelberg plant would result in unbearable social effects for the employees and that it is also the completely wrong decision for the Haldex group. The letter states that on January 15, 2020 an expert report, commissioned by the Staff Works council, was handed over to the representatives of Haldex. According to the Staff Works council the report provides detailed evidence of the non-existent cost-effectiveness of the proposed closure, combined with an alternative concept. “Only a day later, however, responsible board members rejected this in a written notice. That's why we get in contact with you all again as the leaders of the Haldex group with this open letter,” the letter reads. As stated earlier, Haldex wrote in a press release in October that the group’s European region “had not managed to increase profitability to a level that meets the expectations”, this is something that the Staff Works council contests in the letter. “In the past years at the plant in Heidelberg we got positive results and margins, with just these 100 employees. With the implementation of this decision to close the positive Heidelberg plant, the overall situation will become worse for Haldex Europe. The decision against Heidelberg will have a negative influence to the other inner European plants.” The Staff Works council also claims in the letter, citing statements from colleagues in Hungary, that the facility in Szentlörincskáta is too small to handle the move of all the lines from Heidelberg and still continue production in an orderly manner. “In Hungary they always have obstacles with fluctuation, problems and lack of knowledge, so that they need three times more works to get the same output. Due to this by far reduced productivity the advantages of the lower salary (according to the management in a ratio of 1 to 4) will be eliminated,” the letter continues. The staff of the Heidelberg plant are therefore pleading for an alternative solution. According to the letter, the best way to get the plant back to its former knowhow and capacity base – is to improve the R&D of the facility (which was significantly reduced and transferred to Mira/UK in 2015). The letter also argues that remaining in Germany would benefit the relationships with important customers within the truck industry, such as Daimler and others. Evertiq reached out to Haldex for a comment on the contents of the letter. “The Board and management are carefully preparing a reply to the letter sent by the Staff Works Council of Haldex GmbH Heidelberg that will be sent early next week. As of now I would like to express that we appreciate the effort taken by the employees as it shows their commitment to Haldex. Although we don’t share the described situation and we will give this feedback to the local Works Council. We fully understand the personal hardship this decision means to our employees and it is unfortunate for those affected. It is the responsibility of the board and the management to shape a sustainable strategy for the whole group and act accordingly to build a strong and profitable company, especially in a time of industrial transformation”, says Helene Svahn in an emailed statement to Evertiq.
Heidenhain opens new expanded Western US HQ This includes the expansion of its executive, sales and technical support offices, as well as demo facilities in San Jose, California.
Delphi Technologies awarded new power electronics business Delphi Technologies is making new strides by securing new power electronics business wins in the second quarter of 2020 with three Chinese OEMs. The new business is scheduled to launch in the 2021-23 timeframe.
Mycronic combines US operations in new facility near Boston Mycronic US says that all of its operations have been integrated into a new 102,000 square-foot facility in Tewksbury, near Boston, Massachusetts.
Lynn Electronics acquires West Coast cable assembly company Pennsylvania-based Lynn Electronics, a manufacturer of fibre optic and copper cable assemblies, has completed its acquisition of Coast 2 Coast, LLC (C2C), an Anaheim, California cable assembly manufacturer.
Fictiv and Jabil team up for agile 3D printing collaboration The collaboration aims to accelerate and de-risks product development in the move from prototyping and low volume production to large scale global fulfilment.
TT expands with new industrial electronics manufacturing facility The UK-based electronics manufacturing specialist is expanding the footprint of its Global Manufacturing Solutions division by opening operations in Kuantan, Malaysia.
GE Appliances invests $62 million at its Louisville facility The manufacturer is gearing up to build high-end refrigerators and expand capacity at its manufacturing facility in Louisville, Kentucky., creating 260 new jobs.
Eaton buys new facility – merges busway operations from multiple sites Power management company Eaton has purchased a new facility in Hodges, South Carolina, establishing a new home for Eaton’s busway product line currently spanning three facilities across Greenwood County.
AIM adds new facility in Brazil AIM Solder has opened a new wholly-owned facility in Manaus, Brazil. This new stocking facility, which represents the only legitimate source of AIM products in Brazil, enables the company to support a growing Brazilian market.
PFOA now in REACh and POP regulation On 4 July, PFOA - perfluorooctanoic acid, its salts and precursor compounds - was included in the POP (Persistent Organic Pollutants) Regulation (EU) 2019/1021 and at the same time also came into force in the REACh Regulation (Annex XVII, entry 68).
Manz AG receives further Battery order Manz AG is expanding its successful partnership with an international battery manufacturers in the Energy Storage segment with a further major order in the mid double-digit million euro range.
Advantech and Interlatin to set up JV in Mexico Industrial IoT specialist, Advantech, says it is establishing a joint venture subsidiary in Mexico with its channel partner Interlatin.
Mercedes-Benz takes equity stake in Farasis Mercedes-Benz is taking another important step on its journey towards CO₂--neutral mobility. The Stuttgart-based car manufacturer has launched a strategic partnership with Chinese battery cell manufacturer Farasis Energy (Ganzhou) Co., Ltd., including taking an equity stake.
A new EMS provider sees the light of day EMS providers DataED and Bestronics merge to launch a new player – Emerald EMS.
Tektronix joins the fight agains COVID-19 Tektronix has shifted its focus from supporting vehicle manufacturing to assisting with ventilator production.
ABB completes divestment of Power Grids to Hitachi ABB has reached a significant milestone in the company’s transformation towards a decentralized global technology company, with the completion of the divestment of 80.1% of its Power Grids business to Hitachi.
Germany amps up domestic battery production with massive state subsidies The German government is investing more than EUR 1.5 billion in battery cell research and production.
Internal promotions and executive retirements at Kimball EMS provider, Kimball Electronics, has made two new internal promotions aimed at contributing to the company accelerating its strategic growth plans.
Kyocera & TMDU team up for research on vitals measurement headset Kyocera Corporation and Tokyo Medical and Dental University (TMDU) have teamed up on a joint research project to develop a wireless headset that can remotely monitor high accuracy patient biometrics, such as blood oxygen saturation (SpO2).
German battery manufacturer receives funding for cell production facility VARTA AG receives public funding of EUR 300 million for battery cell production facility.
Scanfil to streamline its factory network The EMS provider is planning to combine the production of its Hamburg factory with its other factories in Germany and Poland
Kitron awarded new order within measurement technology Kitron has been awarded new business for measurement technology. The award covers a period of five years, and the expected annual value is between EUR 3.5-5 million.
NORBIT ASA awarded aquaculture contract Norwegian technology manufacturer, NORBIT, has been awarded a new contract from an existing customer within the aquaculture market.
Saki strengthens its Asian operations The AOI specialist is expanding its global sales organisation with new Asia sales department, and appointing Katsuhiro Eddie Ichiyama as Senior General Manager for the Asian regionLoad more news