Öhringen, Germany. October 14, 2015. Freudenberg Sealing Technologies is reorganizing its liquid silicone business on the basis of current general economic and sector-specific developments. As a result, it is planned to relocate production from Öhringen (Baden-Württemberg, Germany) to Losenstein, Austria, by the middle of 2017. The tooling plant, also located at the site, is to remain in Öhringen, in accordance with the plan. Employees at the site were today informed about the measures to be taken at a special employee meeting. Negotiations will now start with employee representatives to discuss the plans and to develop solutions. Freudenberg employs some 140 people at the site.
To ensure it remains competitive in this field over the long-term, Freudenberg Sealing Technologies aims to meet the current and future needs of the market through more efficient, cost-optimized and globally-oriented structures. The reasons for the planned relocation include the increased pressure on prices in the market, also attributable to carmakers' modular platform strategies. The current price structure for liquid silicone products manufactured in Öhringen no longer enables the company to win urgently-needed new business.
At some 30 percent of the total costs, payroll expenditure is extraordinarily high at the site in Öhringen. The same is true of the costs for energy which are around 40 percent higher than those in Austria. Both can be reduced significantly through the planned relocation in other words by merging production at the Losenstein site in Austria.
Moreover, the Group's innovative strength can be significantly enhanced. With the planned consolidation of both sites, Freudenberg is combining its strengths in thermoplastic seals, particularly in the automotive sector, with its experience in liquid silicone production in different industrial segments.
About the Freudenberg Group
Freudenberg is a global technology group that strengthens its customers and society long-term through forward-looking innovations. Together with its partners, customers and the world of science, the Freudenberg Group develops leading-edge technologies, and excellent products, solutions and services for more than 30 market segments and for thousands of applications: seals, vibration control components, nonwovens, filters, specialty chemicals, medical and mechatronic products, IT services and the most modern cleaning products.
Innovation strength, strong customer orientation, diversity and team spirit are the cornerstones of our Group. Commitment to excellence, reliability and pro-active, responsible action belong to the company's core values lived for more than 165 years.
In 2014, the Freudenberg Group employed over 40,000 people in some 60 countries worldwide and generated sales of more than 7 billion Euros (including pro-rata consolidation of 50:50 joint ventures). For more information, please visit www.freudenberg.com.