AGC intends to close its Wegberg Plant (Germany)

On February 9th 2022, the Top Management of AGC Glass Germany GmbH (Wegberg Plant) informed its local works council of its intention to stop production activities in Wegberg Plant (OEM Central Cluster). 

This restructuring plan would entail the dismissal of 84 people within the next 2 years (2022-2023), including permanent and temporary contracts, white and blue collars employees dedicated to these production activities. Other staff employed by AGC Glass Germany GmbH would not be impacted.

The Automotive sector is under unprecedented pressure with potential consequences on capacity utilization.   
For several years, the automotive market has been under permanent pressure (uncertainty about engine technology, new competitors emergence, Chinese importations, Covid pandemic, semiconductors, energy and raw material price crises). AGC Automotive (OEM Central Cluster) is facing difficulties to effectively saturate its plants and quickly adjust its costs structure to remain competitive and profitable in such an economical and market environment. 
Furthermore, the Cluster production capacities no longer match its customers’ footprint. 

A reorganization is essential to the survival of the business.   
Production and Fixed Costs within the OEM Central Cluster unit must be reduced to:

• Compensate the drop in volumes and reduce financial losses to effectively utilize capacity within Central Europe.
• Be able to achieve the highest production flexibility required by customers within the smallest market proportion.
• Reduce the expected financial losses for the years 2022-2023 and try to ensure long-term survival by attracting new models in a new and ever more competitive environment.

A social plan, as well as the related support measures, will be negotiated with the various partners concerned.