Closure of TSTG Schienen Technik in Duisburg: Settlement procedure begins on March 4 / Professional support in finding new jobs

Regardless of the outcome of the agreement procedure, the way is now clear to actively look for replacement jobs for TSTG employees. The plant management - together with the works council - will commission a professional personnel service provider to provide the employees with concrete support in their professional reorientation. In recent months, the plant management has already been actively seeking further employment opportunities for the employees. Currently, ten companies - voestalpine companies and industrial partners from the region - have shown concrete interest in taking on employees.

In the long term, increasing overcapacity in Europe, ruinous price competition and the lack of an in-house supply of input material make it impossible to continue the plant beyond 2013 in a responsible and economically viable manner. The current overcapacity in Europe in the standard rail sector is already more than 50% of actual demand, and the situation is even more dramatic for heat-treated rails. The closure of the plant will therefore neither lead to shortages nor to a reduction in production volumes on the customer side. No effects on employment at other companies are to be expected.

Unfortunately, the facts speak for themselves: TSTG is generating an operating loss in the double-digit million range - based on a normal sustainable year - despite excellent capacity utilization and unexpectedly low raw material costs. The auditors confirmed this negative development again this week on the basis of TSTG's current business figures. Insolvency has so far only been prevented by means of financing commitments and the assumption of operating losses by the voestalpine Group.

Although it has been known on the market for almost a year that TSTG will be closed by the end of 2013, no potential buyer - neither company nor investor - has shown any interest in taking over the plant. Talks between the plant management and suppliers and customers about a possible takeover have only ever produced one result: no interest. The main reason for this is the massive structural overcapacity in the European market.

Since the start of negotiations, management and owners have declared their commitment to the future of the employees. With the willingness of the works council to talk concretely about a social plan and the professional placement of jobs, the necessary conditions for constructive solutions have been created - after a long delay. The TSTG plant management will implement the necessary steps consistently and quickly. The voestalpine Group is aware of its responsibility towards its employees, has already made the necessary financial provisions in 2012 and will provide a substantial double-digit million amount for the orderly closure and implementation of the social plan.