Negotiations finalised: production at Haldex Heidelberg to move in 2Q

As previously reported, Haldex has made a decision to concentrate the production of EBS and air suspension products to Hungary. This decision will lead to the closure of the factory in Heidelberg, Germany and that R&D will be relocated to England and Sweden. Negotiations with the Union have now been concluded, and an agreement has been reached on 20 March 2020. A total of 80 people out of the 100 employees in Heidelberg are affected. Most of the employees have a six months’ notice period which means that they will leave the company as of September 30, 2020. All employees concerned will be offered temporary employment in a transfer company for a maximum period of 12 months, a press release reads. The relocation of production equipment will take place in the second quarter of 2020 and the relocation of R&D will be finished by the end of the third quarter of 2020. The total cost of the restructuring is estimated at EUR 14 million. Of this, the cost of redundancies and redeployment amounts to EUR 12.7 million. Cost savings are estimated at EUR 4.5 million per year when the relocation is fully completed.