Mann+Hummel, whose products include filtration solutions for vehicles and industrial applications, is ending production at its headquarters in Ludwigsburg, Germany in a move affecting 400 jobs.
The decision ends 66 years of production at the site near Stuttgart and the company said existing production will be phased out or relocated.
The move also comes less than two months after the company announced the highest turnover in its near 80-year history standing at 4.2 billion euros for the 2019 financial year.
Mann+Hummel said the specific timetable for the closure will be agreed in co-operation with customers and employee representatives.
“This was a necessary measure to ensure the company’s future. Of course, the company headquarters with the research and development center will remain here and we will continue to invest in the technology center. We stand by the Ludwigsburg location,” said the chairman of the Supervisory Board, Thomas Fischer.
The company said it “continuously reviews its production sites to ensure its ability to meet evolving customer needs. Over the course of these strategic considerations, it was determined that the competitiveness of the Ludwigsburg production facility cannot be maintained.”
“As an international company, Mann+Hummel is not only responsible for the Ludwigsburg site. In order to remain competitive in the medium to long term and to safeguard the future of the company with 22,000 employees worldwide, we need to make this adjustment to our production network,” said Hanno Höhn, chief Supply Chain officer and labor director.
Among other components, fuel, oil and air filter systems for automotive original equipment are produced in Ludwigsburg. The company said it will “ensure a smooth transition for its customers and suppliers at the affected site and the receiving factories.”