Dräxlmaier Halts Worker Layoff Program in Zrenjanin

German automotive supplier Dräxlmaier has announced it will halt its planned layoff of 359 employees at its Zrenjanin, Serbia, facility. The company had previously stated these layoffs were necessary due to a decline in European automotive production and a lack of new orders.

Dräxlmaier is currently evaluating its future business prospects in Serbia, with a particular focus on the burgeoning e-mobility sector. Guido Meinelt, Head of Operations for Eastern Europe, cited increasing demand driven by rising fuel costs and new subsidy schemes in various European countries as factors influencing this shift.

"We see greater demand in the e-mobility sector, due to rising fuel costs and new subsidy schemes in various European countries," Meinelt stated. He expressed optimism about securing new contracts for the Serbian operations and indicated that a decision would be made in the coming weeks. Tobias Afsali, Vice President for Global Human Resources, acknowledged the dedication and loyalty of Dräxlmaier's Serbian workforce and reiterated the company's commitment to exploring new opportunities in Zrenjanin.

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We see greater demand in the e-mobility sector, due to rising fuel costs and new subsidy schemes in various European countries.

"We are happy that new projects are in the final decision phase," Afsali commented. The company has been in close communication with Serbian state authorities, including the Ministry of Economy, to find a swift and sustainable resolution for the Zrenjanin factory. Minister of Economy Adrijana Mesarović has shared updates on these meetings via social media.

Dräxlmaier, which manufactures wiring sets for the automotive industry, had confirmed late last year its intention to gradually close its Zrenjanin plant by the end of 2026. This decision was attributed to the downturn in Europe's automotive sector. At that time, regional representative Ralf Kapelle assured that the company was aware of its responsibility towards its employees and would offer an appropriate social package.

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We are happy that new projects are in the final decision phase.