Schaeffler discontinues production in Steinhagen plant

The Board of Schaeffler AG has decided to cease production at its Steinhagen (Germany) site by the end of 2026 and close the plant there. The product portfolio will be integrated into the headquarters of the Bearings & Industrial Solutions (B&IS) division in Schweinfurt (Germany).

This is part of the structural measures announced in November 2024 with a regional focus on Europe and Germany. The aim of these measures is to keep the Schaeffler Group and the B&IS division competitive in the long term in a tough environment. The B&IS division is confronting a sustained economic downturn, structural issues, and intensified competition.

With its roughly 200-strong workforce in Steinhagen, Schaeffler mainly produces spherical plain bearings for various industrial applications, primarily in the drive technology and agricultural and construction machinery sectors. The sales performance at this location has been negative for years, while the fixed costs have remained the same or have even increased. At the same time, a long-term negative volume trend as a result of a lack of competitiveness at the site along with price pressures in the market is making the situation even more difficult.

Against this background, the company has in recent months worked with employee representatives as agreed to intensively review a wide range of scenarios for a future concept for the Steinhagen site. These included, for example, winning new orders, renegotiating prices with suppliers, streamlined site management, or the leasing of vacant buildings.

“We regret that no workable solution for the site could be found in the course of the intensive analyses and discussions,” says Sascha Zaps, CEO Bearings & Industrial Solutions. “By integrating the product portfolio at the much larger Schweinfurt site with its correspondingly better cost structure, Schaeffler is at the same time creating the basis for continuing to manufacture the product in Germany. This means that more than 100 jobs in Germany can be retained, albeit at a different location.”

For the around 200 shop floor employees in Steinhagen, the next steps will be determined in the forthcoming discussions between the employer and employee representatives. Around 20 employees from the plain and spherical plain bearings product group, and the product management, are set to remain in other premises at Steinhagen.