Plastics processing equipment maker KraussMaffei Group will not shutter its plant in Treuchtlingen, Germany, after all.
According to a statement, the Germany-based company has reached an agreement with unions and workers that allows it to keep the plant open.
In mid-Nov., KraussMaffei had announced that it would close the plant and move its production of components for small- to mid-sized injection molding machines and extruders to other plants in Germany and Slovakia.
According to the new statement, KraussMaffei representatives reached an agreement with a German metalworkers' union and the company's workers’ council to ensure the plant will continue operations. "As part of constructive and objective negotiations, all parties have also agreed that there will be no redundancies for operational reasons until 31 December 2015," said KraussMaffei chief executive Jan Siebert.
In addition, in a move to raise the company’s global competitiveness, the parties have agreed to implement a 38-hour work week for Treuchtlingen employees between January and September 2014, KraussMaffei said, followed by a 37-hour work week from October 2014 through December 2015, with no wage compensation.