Press archive 2009

02 April 2009

ebm-papst is cutting 250 jobs in St. Georgen and Herbolzheim, Germany

Due to the global economic crisis, ebm-papst, the world market leader in fans and motors (10,000 employees / 1.076 billion EUR turnover) will cut one-sixth of the 1,566 jobs in St. Georgen and Herbolzheim, Germany. A total of 250 employees, both in administration and production, will be affected.

ebm-papst's company location in St. Georgen
ebm-papst's company location in St. Georgen

The ebm-papst St. Georgen subsidiary has made this decision as a result of a large drop in orders in the automotive industry, mechanical engineering and the IT and telecommunications industries.

"We do not foresee a recovery to original levels for these market segments in the medium term," says Dirk Schallock, Managing Director of ebm-papst St. Georgen GmbH & Co.KG. "From today's perspective, I anticipate a decline in sales of 10% to 205 million EUR for the fiscal year beginning in April," Shallock continues.

This means the subsidiary is missing sales plans that were in effect as recently as 12 months ago by about a third and is forced to adjust personnel levels to secure the future of the locations. As recently as last year, the ebm-papst subsidiary achieved a turnover of 264 million EUR. Since March, employees in the affected locations have been on short time between three to eight days per month. Capacity utilisation is at just about 65%.

"The crisis is unprecedented both in terms of dimension and the speed with which it took hold," comments Hans-Jochen Beilke, Chairman of the Board of Managing Directors of the ebm-papst Group, with regard to job cuts in St. Georgen and Herbolzheim, Germany. "It is difficult to predict at this time how the worldwide economic crisis will impact the ebm-papst Group. However, our commitment in the area of energy saving fans, our innovation leadership and our broad market position are still to our advantage," says Beilke.

About half of the approx. 2,600 employees at the Mulfingen headquarters and about a third of the nearly 1,000 employees at the Bavarian subsidiary, ebm-papst Landshut, have also been on short time since April 2009, yet Beilke currently still rules out job cuts at these locations.

Hauke Hannig
Head of Corporate Communication / Press Spokesperson ebm-papst Group
Phone: +49 7938 81-7105
Fax: +49 7938 81-97105

ebm-papst Mulfingen GmbH & Co. KG
Bachmühle 2
74673 Mulfingen