Members Area
     
T: +44 (0)114 551 8170
E: ssas@bssa.org.uk

Outokumpu to close its Dahlerbrück and Hockenheim sites in Germany

According to the company strategy, Outokumpu announced in November 2023 its plans on restructuring measures in Germany and started related procedures with employee representatives to shut down the operations of Dahlerbrück and Hockenheim sites in Germany. These negotiations have been completed in April 2024 with an agreement on the restructuring measures and execution of the closures can move forward.

Outokumpu will now start to centralize advanced materials production in Germany to Dillenburg. In practice, this means that precision strip operations will be transferred from Dahlerbrück to Dillenburg. Outokumpu will also close its coil service center in Hockenheim and transfer the volumes to other sites. All in all, the restructuring measures impact approximately 200 people in Germany. The closure of Hockenheim is expected to be completed by the end of the second quarter of 2024, and Dahlerbrück operations are to be closed by the end of 2024 and partially transferred to the Dillenburg mill.

“We thank our labor representatives for the constructive negotiations in support of our common objective to strengthen the company’s European competitiveness in the long run. These measures are difficult but necessary and they will be implemented in a socially responsible manner and, where possible, avoiding compulsory redundancies,” says Thomas Anstots, President, Advanced Materials business line.

“We are a global leader in advanced materials, and we want to further strengthen this position. Centralizing the expertise, product portfolio and operations under one roof in Dillenburg will allow us to expand our offering and to reposition the site as the core value creator within our Advanced Materials business line alongside our mills in Sweden, with the full spectrum of our advanced materials products,” concludes Thomas Anstots.

The restructuring measures are expected to entail yearly savings of approximately EUR 15 million. The total restructuring cost for both sites including the social plan and shut-down costs total approximately EUR 28 million. Previously, Outokumpu had recorded in the fourth-quarter 2023 EBIT an adjustment item of approximately EUR 30 million related to the planned closures. Investments and costs related to the transfer of the precision strip production from Dahlerbrück to Dillenburg are expected to amount to EUR 22 million, the majority of which will be realized during the year 2024.