German aerial manufacturer Kathrein will close down its production plant in Bavarian town Nördlingen, laying off around 700 employees.
The move is a reaction to the massive price decrease and high competitive pressure in international markets, according to Kathrein. The commissions from network operators and network suppliers in the mobile business have considerably dropped in the past months and there are high over-capacities in the markets, according to the company. This would additionally increase the price pressure faced by manufacturers of communication technology.
Kathrin says it is therefore forced, like its competitors, to produce in foreign countries at considerably lower costs. The company has three plants in Romania, China and Mexico.
The closure of the Nördlingen site will take place gradually. Due to a lack of commissions, the first 200 employees will be made redundant as soon as possible. The remaining 500 employees will follow on 30 April 2016 when the plant will be shut down.
Additionally, Kathrein will lay of around 300 employees at its headquarters in Rosenheim and also terminate series production at the site.
