GGB closes Heilbronn location: 65 jobs at risk!

GGB closes Heilbronn location: 65 jobs at risk!

There is worrying news from Baden-Württemberg: The US group GGB is planning to close its only German location in Heilbronn. How Mercury reported, this decision affects more than half of the workforce. Of a total of 115 employees, 65 will soon have to vacate their jobs. The company justifies the closure with rationalization measures, while the exact background remains unclear.

The production of plain bearings for the automotive industry and medical technology at the Heilbronn site has existed since 1991. GGB, part of the Timken Group based in New Jersey, has the intention to relocate production to Slovakia and bring logistics to France, reports express. The decision was communicated to staff on May 14, but official material on the specific reasons is lacking, apart from commonly expressed problems such as high energy costs and bureaucratic hurdles in Germany.

Reactions from the workforce and union

Reactions to the news are understandably strongly negative. IG Metall has taken a clear position and announced that it will fight together with the employees to preserve jobs. Niklas Anner from IG Metall explained that the employees are angry and they are determined to stand up for their rights. Despite the economic situation at the Heilbronn plant, which is described as “solid” according to IG Metall, short-time work recently ended, which makes the general circumstances seem even more remarkable.

In the context of this closure, it should also be noted that the Heilbronn region is already experiencing other economic difficulties. There were recently massive job cuts at a subsidiary of Thyssenkrupp, and an electric vehicle manufacturer in the district also filed for bankruptcy. This casts a gloomy light on the economic situation in the region.

Against the challenges of corporate succession

The challenges for companies, especially the succession problem, are becoming increasingly relevant. According to the DIHK's Business Succession Report 2023, a quarter of entrepreneurs are considering closing early because they cannot find a suitable successor. This applies in particular to small and medium-sized companies, which are often heavily dependent on family structures. The lack of willingness to succeed represents considerable economic uncertainty, which is fueled by rising energy costs and high levels of regulation, such as Study of Germany starts shows.

The situation at the GGB location in Heilbronn is therefore not just an isolated matter, but reflects a larger problem that affects many entrepreneurs in Germany. It remains to be hoped that successor solutions planned in a timely manner can prevent job losses in similar cases in the future. The concern expressed by everyone about the economic conditions warns of the fragile situation in which not only GGB but also many companies in Germany find themselves.