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[October 2001]
German Construction Downturn Has Impact on Heavy Clay Manufacturing
In response to the continuing economic and structural crisis in the German construction industry, Wienerberger's CEO Wolfgang Reithofer some weeks ago announced that there would have to be plant closures. Following an analysis of existing production facilities, it has been decided to close 5 plants in Germany by the end of this year.
Facilities in both the new and old German provinces are involved. Closures will comprise the Poroton hollow brick plant at Koenigsaue in Saxony-Anhalt and facing brick plants at Buchhorst in Schleswig-Holstein and in Hude in Lower Saxony. In addition, production structures will be adjusted in the hollow brick plant at Hainichen in Saxony. The 120 affected employees were informed of these actions in company meetings.
Additionally, Wienerberger Ziegelindustrie GmbH in Germany has announced the permanent closure of brick plants at Niederndorf in Bavaria and Schoenau in Thuringia, as of this year-end.
These measures, say the group, are required to improve the utilisation of capacity at the remaining, largely modern production facilities over the long-term, particularly on a regional basis. It adds that these actions will also serve to safeguard more than 1,300 jobs at over 30 other Wienerberger locations in Germany.
Over the past two years, more than 40 hollow brick plants and roughly 20 facing brick plants have been closed in Germany. Wienerberger has been responsible for a major contribution to this capacity adjustment. In total, it has shut down nine plants since the beginning of 2000.
ENDS