Schaeffler Sheffield: Around 200 jobs at risk as car parts maker plans to cease production at Sheffield plant
Schaeffler has announced plans to cease production at its Sheffield plant, as the German manufacturer seeks to cut 3,700 jobs in total.
The company announced today, Wednesday, November 27, that it intends to discontinue operations at its Sheffield base, which produces clutch systems for cars and tractors.
It said the decision was driven by declining demand for manual cars and therefore clutches, which is leading to ‘considerable’ overcapacity at its Sheffield plant, on Waleswood Road, Wales Bar.
The firm plans to produce passenger car clutches in Szombathely, Hungary, and tractor clutches in Hosur, India, where it said demand for these products is increasing.
Schaeffler said that subject to consultation it intends to ‘relinquish its footprint in Sheffield’ and transfer employees in unaffected ‘central functions’ there to its existing office in Birmingham.
How many people are employed at Sheffield site?
Around 200 people are currently employed at the Sheffield plant, out of a total of approximately 560 staff across its three UK sites, the others being in Hereford and Birmingham.
Matthias Zink, Schaeffler’s CEO Powertrain & Chassis, said: “These carefully considered measures will align Schaeffler’s clutch production network with market demand.
“Discontinuing production in Sheffield and consolidating our clutch production operations will safeguard the competitiveness of our global clutch business and deliver benefits to our customers.
“Having said that, we are mindful of the consequences of these measures and will now do everything we can to work with our employees in Sheffield to develop fair solutions.”
The company also announced plans to cease production in Berndorf, Austria, and said sites in Romania and Slovakia would be affected too.
It said the measures were needed as its Bearings & Industrial Solutions division was ‘grappling with continuing economic weakness, structural problems, and increasingly intense competition’.
When will Sheffield plant close?
In total, Schaeffler said a total of 4,700 jobs would be impacted, including around 2,800 in Germany and 1,900 elsewhere in Europe, with production relocations reducing the net reduction in jobs to around 3,700.
A spokesperson for the company said that it would probably end up cutting its UK workforce by around 200, which is roughly the number of staff based at its Sheffield site.
Schaeffler said it intends to implement the changes between 2025 and 2027, with the plan being to gradually phase out production at the Sheffield plant.
“The company is now entering into statutory consultations with elected representatives for all employees at the locations affected and with its European Works Council,” the company added.