Schaeffler says Romanian location will take on production capacity but will be affected by job reductions

On November 5, the Board of Managing Directors of Schaeffler AG announced structural measures for Europe aimed at securing a long-term increase in the company’s competitiveness. The structural measures in Europe outside of Germany are focused mainly on the Bearings & Industrial Solutions division, which is grappling with continuing economic weakness, structural problems, and increasingly intense competition.

Within Europe, the program of measures will – as previously announced on November 5, 2024 – impact a total of 4,700 jobs, including around 2,800 in Germany and 1,900 at European locations outside of Germany. Production relocations will reduce the impact in Europe to a net reduction of about 3,700 jobs.

In the Bearings & Industrial Solutions division, Schaeffler plans to cease production in Berndorf, Austria. This location currently produces wheel bearings and wheel hub modules as well as gearbox bearings for the company’s automotive, industrial and aftermarket operations. These products are used primarily in heavy commercial vehicles, such as trucks, tractors, and construction machinery.

“These sectors are facing strong demand volatility as well as extremely intense cost and price pressures as a result of growing competition in the European market by Asian manufacturers. Because of the Berndorf site’s relatively small scale, it has become very difficult, if not impossible, to manage the strong demand volatility in a way that maintains planning certainty and commercial viability. It is not possible to make up for the sharp increases in material, energy and labor costs of the past few years by imposing further price increases on customers. For these reasons, the above products will in future be produced at more cost-effective locations in the company’s production network in Europe, China, and wider Asia,” a release shows.

Schaeffler’s site in Brasov, Romania, is also affected by consolidation measures. The company intends to set up production capacity for standard bearings in Asia, and to consolidate production of brass cages away from Brasov. On the other hand, Schaeffler will set up production capacity for certain products – such as industrial products for European customers – in Brasov. In addition, linear products from Homburg and Taoyuan will be consolidated in Brasov. This will make the Brasov plant a central production location for linear components.

The facility there will continue as Schaeffler’s global lead plant for large bearings of up to 4 meters in diameter, including production of components for these bearings. Essential capital investment is also being planned for this location.

“Through the necessary consolidation of our European production network, we are improving our cost structures and making our company more competitive,” said Sascha Zaps, CEO Bearings & Industrial Solutions. “The focus of our plans is on putting Schaeffler’s bearings business in a strong position for the future, to ensure long-term profitability and optimize collaboration with our customers. Our goal is to find viable solutions with employee representatives and employees as quickly as possible.”