Voestalpine AG, the Austrian steel-based technology group, announced a reorganization of its Automotive Components business in Germany, affecting 220 employees with the closure of its Birkenfeld plant.

The restructuring is part of the company’s efforts to address changes in the automotive sector and declining customer demand. Voestalpine plans to integrate its remaining four German plants into a joint production network.

The Birkenfeld plant, which produces steel and aluminum components, has faced financial losses for several years. The company cited a long-term decline in the macroeconomic environment and automotive orders as reasons for its closure. Negotiations with IG Metall and Works Council representatives will seek a socially responsible solution for affected employees.