Future of Alstom plant in Germany in doubt

14th January 2005, Comments 0 comments

BERLIN, Jan 14 (AFP) - The future of a German factory belonging to French industrial giant Alstom is looking uncertain, two executives of Alstom's German unit Alstom Power Generation suggested in an internal communication released on Friday.

BERLIN, Jan 14 (AFP) - The future of a German factory belonging to French industrial giant Alstom is looking uncertain, two executives of Alstom's German unit Alstom Power Generation suggested in an internal communication released on Friday.

"If things continue as they are, we cannot guarantee our current activities in Mannheim," executives Gerard Brunel and Udo Wunsch wrote in article in Alstom Power Generation's in-house magazine Megafon, a copy of which was obtained by AFP.

Alstom Power Generation, which makes power plants, employs around 2,000 people in Mannheim where employees have been given job guarantees until 2007.

"Revenues are at low levels and incoming orders have fallen dramatically," which would tear of a hole of "some EUR 200 million (USD 262 million) in the budget until March 2005," the executives wrote.

And in view of the anticipated level of investment in the sector, "a significant improvement in orders from Germany cannot be expected before 2010."

The decline in orders has led to a "dangerously low" level of capacity utilisation at the Mannheim-Kaefertal factory, the article said.

In addition, "the high level of our costs is not justified by a correponding increase in quality compared with so-called low-wage countries," it said.

Indeed, "according to the latest quality audit, our internal competitors in Poland are better," the executives said, calling for increased productivity and quality.

© AFP

Subject: French News

0 Comments To This Article