Voith announces extensive restructuring project for massive cutbacks for paper division

Wednesday, Feb 04, 2015

Voith's paper division is facing radical capacity cutbacks with an elimination of about 1,000 positions worldwide. The production facilities in Krefeld und Neuwied will be shut down, while paper division activities in St. Pölten, Austria, will be ceased. The group is to pool its European capacity at its headquarters in Heidenheim, Germany.

The Heidenheim site will also shed some 300 jobs with the closure of its steel construction and mechanical production assets. The Ravensburg production plant will shut its doors, but the competence centre for stock preparation is to stay open.

Voith Paper's portfolio is to stay the same despite the partial and complete closure of some facilities.

The company is also planning to streamline administrative procedures across all divisions. Four shared service centres are to be established in Kunshan, China (for Asia), York, US (for North America) and in São Paulo, Brazil (for South America). A decision has yet to be made about the location for the centre serving Europe, the Middle East and Africa.

The planned restructuring of administrative functions will cut 720 positions. The headquarters will lose about 450 employees including the workforce reductions in the paper division.

Voith is also set to part ways with its industrial services business and has announced that it is seeking a buyer for these assets.



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