Buderus Edelstahl is the latest company to announce layoffs, amid a softening European steel market. The company announced upto 325 redundancies by mid-2020.
The voestalpine subsidiary is working on severance packages for 200 employees in addition to 125 fixed-term contract employees who won’t be brought back, at its 1,500-employee hot rolling mill in Wetzlar, Germany.
Europe’s flagging automotive sector has adversely impacted the stainless steel-producing Buderus Edelstahl. Demand for hot strip products have tapered commensurately with declining auto sales. Additionally, European stainless steel prices have been dropping as a consequence of excess production capacity as growth of imports from non-EU countries and global trade conflicts further complicate the market.
Turbulent market conditions aside, location costs such as electricity and grid costs across the state of Hesse have increased, forcing Buderus Edelstahl to reduce in-house production.
voestalpine has invested €300mn (USD$332mn) in this subsidiary over the last decade.
€1 = US$1.11 (December 20, 2019)