Phoenix to relocate some parts production

HAMBURG, Germany (May 23)—German rubber products maker Phoenix A.G. is selling off part of a prime site in Hamburg as part of a strategy to relocate production of some lower technology parts to regions with lower wage costs. Phoenix, which recently reported a 7.5-percent increase in first-quarter revenues, will sell about a third of its 900,000-sq.-ft. plant in Hamburg-Harburg to a local furniture retailer. Proceeds from the sale will be used to fund conversion of another building in Hamburg into a modern plant for making passenger car air springs, Phoenix said.