Musashi to Close Thuringia Plant by 2026, Threatening 250 Jobs
Musashi, a Japanese automotive parts manufacturer, has announced its intention to close its plant in Leinefelde, Thuringia, by mid-2026, citing economic reasons. This decision will result in around 250 job losses, adding to the ongoing turmoil in the Thuringian automotive industry. The closure threatens the future of a traditional company with a long-standing presence in the region.
The closure will affect the operations of thyssenkrupp Automation Engineering, which is set to shut down its sites in Chemnitz and Hohenstein-Ernstthal, leading to approximately 270 job losses. This move is part of a broader cost-saving strategy by the company. Meanwhile, Musashi's plant in Leinefelde faces a similar fate, with around 250 jobs at risk.
The collective agreement between Musashi and its employees includes a location guarantee until 2030. However, the company aims to challenge parts of this agreement, raising concerns among workers and the works council. Protests have ensued, with employees and the Left party voicing their opposition to the planned closure.
The Thuringian state government has stepped in as a potential mediator, seeking to find a solution that mitigates the impact of the closure on the local economy and its workforce. The automotive industry in Thuringia has already been hit hard by the restructuring at automotive supplier AE Group, which resulted in over 500 job losses. The impending closure of Musashi's plant will exacerbate this situation, with over 500 jobs in total set to be cut in the Thuringian automotive industry.
Adding to the region's woes, thousands of wheels have allegedly been stolen from car supplier Borbet in Bad Langensalza, further disrupting the local automotive supply chain.
The planned closure of Musashi's plant in Leinefelde, along with the impending shutdown of thyssenkrupp Automation Engineering's sites in Saxony, underscores the challenges facing the Thuringian automotive industry. With over 500 jobs at risk and thousands of wheels stolen from Borbet, the region faces a significant blow to its economy and workforce. The Left party has proposed an investment fund to support the automotive industry in Thuringia, while the state government continues to engage in negotiations as a potential mediator. The future of the region's automotive sector hangs in the balance, awaiting the outcome of these discussions.
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