Siemens will go to Hungary unless cost savings can be made

Siemens will go to Hungary unless cost savings can be made

Siemens has threatened to transfer its mobile phone manufacturing from Germany to central Europe unless cost savings can be found. The group said “concrete plans to relocate jobs are under discussion” at its information and communication mobile (ICM) division, centred on the production of mobile and wireless phones at Kamp-Lintfort and Bocholt. Around 2,000 jobs are understood to be at risk.

Siemens said ICM needs to cut costs by 30% to avoid shifting production to Hungary. “This can be achieved through longer, more flexible working hours and other cost-cutting measures.” It noted that 200 jobs in phone service and repair at Bocholt had been saved by a new labour agreement.

The company has emphasised the need for advanced design and automation at its production facilities (PRW.com 26 March 2003). Speaking at PRW and EPN’s recent Plastics in China conference, Siemens vice-president Dr Oliver Prause said the firm had installed automatic workstations for in-mould decorating, pad printing, high-speed transfer and automatic part disposal.

Job relocations were also planned for the information and communication network, and power transmission and distribution divisions.