KraussMaffei to shed hundreds of jobs due to challenging conditions

Munich-based machinery maker KraussMaffei, which is majority owned by Chinese chemical firm Sinochem, says it is responding to an “increasingly challenging market environment with a worldwide adjustment and efficiency programme, including the reduction of several hundred positions in the non-production areas”. It adds that there are currently “no plans to cut jobs in manufacturing and assembly”.

KraussMaffei relocated its headquarters and main plant from Munich-Allach to Parsdorf recently. With 250,000 sq m, the new location is now home to its production for injection moulding and reaction processing, additive manufacturing, mechanical manufacturing and automation.

Just a few months ago, KraussMaffei restructured its external corporate financing. As a result, the financing conditions were significantly improved. This supports the planned adjustment and efficiency programme, it adds, and “further consolidates the long-term development for the company in an overall challenging market environment”.

Early this year, CEO Michael Ruf decided not to extend his contract and named Li Yong as his successor. Since 2018, KraussMaffei Group has been part of KraussMaffei Company Limited, a stock corporation listed on the Shanghai Stock Exchange. Majority shareholder is Sinochem, one of the world’s leading chemical conglomerates.

CEO Li Yong, said: “In the light of internal and external challenges, taking actions to enable us to be more competitive is important to restore profitability at KraussMaffei. Therefore various measures have been initiated to improve operational performance, to increase work efficiency and to reduce the cost base, including job reductions. We are confident that KraussMaffei will get back on the road to success.”

Chairman of the Supervisory Board Zhang Chi also emphasised that the company had modernised its production facilities from the ground up. “In a next step, we are now adjusting our cost base. We are convinced that the company has thus laid the foundations for the turnaround and the return to growth."

Joerg Bremer, Chief Financial Officer and responsible for Human Resources at KraussMaffei, added: "We are aware of our responsibility to work out socially acceptable solutions for employees affected by the planned cutbacks. At the same time, we are keen to offer attractive and future-proof jobs to those employees who stay with us."

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