German premium car parts manufacturer Draxlmaier will fire 800 people from its oldest factory owned in Romania at Pitesti, but instead it will invest EUR 150 million in expanding two production units, a press release informs.
Currently, over 5,500 employees are working at Pitesti. The considered employees are going to receive 10 -12 redundancy payments, depending on the seniority in the company.
Employees of Lisa DLR are already in technical unemployment as of end-February 2017, due to lower orders for the projects managed by the company.
“This situation is the result of several factors: it’s about the naturally decrease of the orders for products whose life cycle comes to an end on the one hand, and on the other hand a major customer decided to move production to Mexico,” Bernd Schmitt, General Manager Lisa Draxlmaier Autopart commented.
However, the over EUR 150 million investment of the German group targets the expansion of the Brasov and Hunedoara units by 2018. “The construction works of Hunedoara and Brasov have already started. In Pitesti, we will continued with the IT and Engineering Development Center – the production within the new company, while the first established company may be closed. The investment in the region will continue by supporting dual education system, as well as the internship program and the teaching classes at the University of Pitesti,” the release also reads.
The current surface of the factory in Hunedoara will double, the construction works are going to be ready in 2017, as for the unit in Brasov, the manufacturing activities in the third hall are expected to start in the next period.
Company’s plans have been approved by Draxlmaier Group management in the last meeting of the Board of Directors and discussed with the representatives of National Union Bloc and trade union of the factory in Pitesti.
Draxlmaier has invested over EUR 500 million in Romania so far, having 15,000 employees.