GGB closes production site in Heilbronn: 65 jobs at risk!

GGB closes production site in Heilbronn: 65 jobs at risk!

The US plain bearing manufacturer GGB plans to close its production and logistics facility at its only location in Germany in Heilbronn, Baden-Württemberg. How Mercury reported that the closure will affect more than half of the 115 employees, which corresponds to a reduction of 65 jobs. This decision was communicated to staff on May 14, but no official reasons for the closure were given. However, it is speculated that cost reasons play a significant role.

GGB, headquartered in Thorofare, New Jersey, specializes in the manufacture of plain bearings for the automotive and medical industries. The Heilbronn location, which has been in operation since 1991, celebrated its 50th anniversary just last year. The planned closure is part of a trend that is affecting several companies in the Heilbronn region, as shown by the job cuts at Thyssenkrupp Automotive Body Solutions.

Relocation of production and logistics

In the future, production will be relocated to low-wage countries, while logistics will be managed in France. The IG Metall union has also taken note of this decision, reporting a “solid economic situation” at the plant, although a phase of short-time work was recently ended. Union secretary Niklas Anner expresses the employees' suspicion and anger over the supposedly dishonest intentions of the parent company Timken.

There remains great uncertainty among the workforce when it comes to the long-term development of the company. IG Metall has already announced that it will fight together with the employees to preserve jobs. Nevertheless, there is little hope for a positive turnaround Kettner precious metals notes.

Political framework conditions as a challenge

In the Heilbronn region, the closure of GGB is seen as further evidence of the decline of German industry. High location costs, skyrocketing energy prices and bureaucratic obstacles are described as unattractive factors for manufacturing companies. This problem does not only affect GGB, but also affects the entire region, where other companies have also announced job cuts or bankruptcy.

The union and the employees appeared combative, but see little chance of success in their efforts to save jobs. The GGB case could serve as a wake-up call for politicians, but they currently seem to be preoccupied with other challenges, which further increases the concerns of workers in Heilbronn.

The situation raises questions about Germany's future competitiveness as a manufacturing location and the political measures required to counteract the shrinking industry.