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Takata Petri moves production of steering wheel plant from Poland to Arad

12.10.2009, 17:13 108

Auto components manufacturer Takata Petri has moved productionof steering wheels for Mercedes and Honda to Arad, after closingthe plant in Walbrzych, Poland, which had almost 600 employees, atthe end of August.

Over the last four years, Takata's Romanian business hasrecorded a steady two-digit rise, which brought the company'sturnover to 269 million euros at the end of last year. According toTakata representatives, the decision to move production from Polandto Romania was made as part of a global operations restructuringprogramme. Following the closure of the Polish plant, 571 employeeswere made redundant.

"The decision to relocate the plant was made at the end of July,due to a need to adjust production capacities so as to suit marketdemand. We are not expecting the market to recover enough as tojustify keeping the plant (in Poland i.e.)," said Lux Jacob,communication manager of Takata Petri AG.

He added that the relocation process is currently under way,with some of the equipment already installed in Arad. The move willbe finalised in a few weeks' time.

The plant in Walbrzych Poland manufactured steering wheels forproducers with plants in Central and Eastern Europe, with its mainclients being Mercedes and Honda. None of the 571 employees hasbeen moved to another plant, with severance pay granted toemployees affected by the layoffs. After closing the steering wheelplant, Takata continues to manufacture seat belts in Poland. Fourmonths ago Takata started a recruitment process, which targeted thehiring of 200 people, after it had made 223 people redundant inJanuary following the reduction in orders from external partnersand from Automobile Dacia.

The company has over 5,000 employees in its three plants inRomania, who work in seat belt production in Arad and in airbagproduction in Sibiu.

"We have so far hired most of the operators. We also hiredadditional personnel needed for new projects. Although we havemoved almost all equipment from Poland to Arad and we needemployees for this, too, the hiring will not be proportionate tothe layoffs made in Poland. It all depends on the marketprogression," Jacob said.

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