Schaeffler closes plants in Austria, Britain as part of restructuring plans
Nov 27 (Reuters) -German machine and car parts maker Schaeffler SHA0.DE on Wednesday said it will close two production facilities, in Austria and Britain, as a part of restructuring measures the company announced earlier this month.
The company said it plans to cease bearings production in Berndorf, Austria, due to sharp increases in material, energy and labor costs over the past few years.
In Sheffield, England, Schaeffler said it will end the production of clutches, citing declining global demand that has resulted in production overcapacity.
More cost-effective company locations in Slovakia and Romania will take on production capacity, but they will also be affected by job cuts, Schaeffler added.
Schaeffler said in early November that it planned to lay off 4,700 people in Europe, with Germany seeing the biggest cuts, after its operating profit almost halved in the third quarter.
Schaeffler's peer Robert Bosch [RIC:RIC:ROBG.UL] also announced plans this month to cut up to 5,550 jobs as the latest sign of struggle in Germany's creaking auto sector, which is grappling with competition from cheaper Chinese rivals and weak demand.
Reporting by Amir Orusov, Editing by Miranda Murray
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