The Lower Austrian branch of the automotive and industrial supplier Schaeffler is about to close; Berndorf employs approximately 460 people. The company is cutting thousands of jobs across Europe. A factory is also being closed in England.
A significant workforce reduction across the group was announced in early November and on Wednesday the company announced its plans for Austria. “Within the Bearings & Industrial Solutions division, the intention is to stop production at the Berndorf location (Austria),” the company said.
Companies under pressure from competition from Asia
Schaeffler currently produces wheel bearings, wheel hub modules and transmission bearings in Berndorf. These are mainly used in heavy commercial vehicles. “These sectors are subject to strong fluctuations in demand and very high cost and price pressure due to increasing competition from Asian manufacturers in the European market,” the report said in a statement.
Due to the relatively small size of the site, “it is difficult, if not impossible, to accommodate these fluctuations in a reliable and economically sound manner,” says Schaeffler.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
