OHRINGEN, Germany—Freudenberg Sealing Technologies is reorganizing a number of its business units as a result of market pressures.
The company said in an Oct. 14 release that its liquid silicone operations was affected by the current business conditions, adding that it plans to relocate production from Ohringen to Losenstein, Austria, by the middle of 2017.
The tooling plant, also located at the site, will remain in Ohringen.
According to Freudenberg, the 140 employees at the site have been informed about the measures and negotiations will now start with works council to discuss solutions.
The German company cited increased pressure on prices in the market as the main reason behind the decision.
“The current price structure for liquid silicone products manufactured in Ohringen no longer enables the company to win urgently-needed new business,” the firm said in its statement.
According to Freudenberg, payroll expenditure accounts for about 30 percent of total costs at the Ohringen site.
The company also claimed that energy costs were around 40 percent higher than those in Austria.