French plastic processing company Plastic Omnium announced it will cut output in Germany by halting the production of auto bumpers.
Plastic Omnium blames the shrinking car market in Europe and also automakers’ own strategic decisions that have led to excess production capacity in Western Europe. For this reason, the company said it has begun talks with staff representatives to cut production of bumpers from its Eisenach-Thuringia factory, which also makes fuel tanks and systems.
Plastic Omnium, which is owned by the wealthy Burelle family, has been developing production in the Americas, China and India in order to offset problems in Europe. The company has a market capitalisation of 1.1 billion euros ($1.4 billion).
The Eisenach-Thuringia plant makes bumpers for the Opel Astra. Opel is shifting production of the Astra to Poland and the U.K., a Plastic Omnium spokesperson said. He added that his company will produce the bumpers at its Polish factory.
The move affects around 100 jobs at a plant that employs 200 workers. Plastic Omnium said it will keep other operations in Germany, where it employs a total of 1,400 people.