KraussMaffei Group has reached an agreement with unions and workers that allows the company to keep open its plant in Treuchtlingen, Germany.
KM had said on Nov. 12 that it would close the plant in order to maintain competitiveness and move its production of components for small- to mid-sized injection molding machines and extruders to other plants in Germany and Slovakia.
In a statement today, KM said talks between representatives of KM, the IG Metall trade union and the KM works council had resulted in an agreement to halt the closure plans for the Treuchtlingen factory.
"In connection with the constructive and professional negotiating discussions, all parties have furthermore agreed that there will be no involuntary redundancy notices up to Dec. 31, 2015," said Jan Siebert, CEO of KraussMaffei Group.
Munich, Germany-based KM said it was agreed that a 38-hour week would be introduced for the period January to September 2014 in order in increase competitiveness of the KraussMaffei Group. A 37-hour week will operate in the period from October 2014 to December 2015, and there will be no monetary compensation in both cases.