Thyssenkrupp to Close Hagen Plant, Impacting 300 Jobs

Thyssenkrupp has announced the impending closure of its automotive plant in Hagen, Germany, which will affect approximately 300 jobs. This decision is attributed to a combination of factors including prolonged weakness in the automotive market, rising energy costs, and increasing labor expenses.

The Hagen facility, which manufactures springs and stabilizers for various automobile manufacturers, has faced significant underutilization, prompting the company to determine that closing the plant is the most responsible course of action. Thyssenkrupp aims to implement a socially responsible job reduction strategy over the next two years, as reported by industry sources.

Current trends indicate a stagnation in the European automotive sector, with many manufacturers and suppliers struggling. Recent reports have highlighted the financial downturn of several major automotive companies, with Volkswagen, BMW, and Mercedes all experiencing substantial declines in profits during the first quarter of 2025.

In light of these challenges, Thyssenkrupp is exploring options for the sale of its springs and stabilizers division, although no interested buyers have emerged thus far. The company is committed to working with the works council and the IG Metall union to negotiate a social plan and ensure fair treatment for affected employees.

The decision to close the Hagen plant underscores the broader economic difficulties facing the automotive industry, where companies are grappling with decreased demand and competitive pressures. As the sector adapts to these ongoing challenges, the impact on jobs and local economies remains a critical concern.