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Röchling closes plant in Wackersdorf: 90 jobs at risk!
Röchling is closing its factory in Wackersdorf due to the crisis in the automotive industry and laying off 90 employees.
Röchling closes plant in Wackersdorf: 90 jobs at risk!
The European auto industry is deep in crisis, and this is also having measurable consequences for the German family-owned company Röchling. The Mannheim-based group, founded in 1822, has been faced with a massive decline in its automotive division since 2023. According to [merkur.de].
The closure of locations is alarming: the factory in Gernsbach was closed in 2023, followed by the closure of the location in Mainburg at the end of 2024. Now the factory in Wackersdorf will also be closed in spring 2025. This comes as no surprise, as CEO Raphael Wolfram has also announced consolidation due to inadequate utilization of 60 to 70 percent. A total of around 90 employees are affected by the closure in Wackersdorf, with many of them being placed at other locations, reports kunststoffweb.de.
Shrinking sales and high risks
The dwindling sales in the auto industry are not an isolated case. In 2023, Röchling's consolidated sales amounted to 2.72 billion euros, which corresponds to a slight increase of 4.6 percent compared to the previous year. Interestingly, the “Automotive” and “Industrial” divisions achieved almost the same level of revenue. But the prospects for the next few years look bleak. Further shrinkage in the automotive supply industry is expected for 2025 and 2026, as merkur.de reports.
The industry is also putting a strain on the general economic situation in Germany. The German auto industry has cut over 50,000 jobs since the beginning of the crisis. A look back at developments shows a decline of around 245,000 jobs in industry since 2019, as shown in an analysis by tagesschau.de. This development is compounded by many challenges, including high energy prices, competitive pressure from companies in China and the costly transition to electric mobility.
Future visions and location sustainability
Where is Röchling headed? In contrast to the automotive sector, the company's industrial sector shows a growth-oriented face. Röchling has invested over 30 million euros in expanding the production of composite parts. The company sees the USA as an important growth region and remains committed to German location policy. This dual focus could play a key role in future stability.
In the current situation, in which the automotive industry continues to be under pressure and there is a risk of additional job losses, many companies are already being proactive and relying on targeted strategies to meet the challenges. However, this may not be enough to avert the looming “de-industrialization” of Germany, which many experts now see as likely.
The coming months will be crucial and it remains to be seen what steps Röchling and the entire industry will take to provide new impetus and secure jobs.