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Voestalpine to Close TSTG Schienentechnik
03/14/2012 - The Management Board of voestalpine AG decided to end production at its Duisberg subsidiary, TSTG Schienentechnik GmbH & Co KG, due to the site’s inability to operate cost-effectively. Closure will occur at the end of 2012 at the earliest.
The Management Board of voestalpine AG decided to end production at its Duisberg subsidiary, TSTG Schienentechnik GmbH & Co KG, due to the site’s inability to operate cost-effectively. Closure will occur at the end of 2012 at the earliest.
The company says it is investigating ways to support the approximately 350 affected employees. TSTG management will enter discussions with several partners with the aim of enabling employees to transfer into new positions. The management will start negotiations with employee representatives over a coordination of interests and a social compensation plan.
TSTG Schienentechnik in Duisberg has been contending with declining capacity utilization levels, recently generating significant losses. Excess capacity in the market impacted the competitive environment and lead to a strong decline in price levels. Therefore, the site in Duisberg is no longer able to produce without making losses, and voestalpine AG has decided to withdraw from the standard rail production segment.
All existing customer orders will be carried out as contracted.
voestalpine is a globally active group with a variety of specialized and flexible companies that produce, process, and further develop high-quality steel products. The group is represented by 360 production and sales companies in more than 60 countries on five continents.
