Closing of the Plant in Osterode

Pictured here the company building of Formtechnik Osterode GmbH & Co. KG. The closure of operations is scheduled for March 31, 2023, the company will be liquidated. The approximately 40 employees are offered continued employment within other companies of the Wirthwein-Group.

40 employees, including six trainees, are offered continued employment within the parent company.

Osterode am Harz. The current global economic and political situation is tense. Interrupted supply chains, tremendously increased freight costs and raw material prices as well as exploding energy costs contribute in many ways to lacking inquiries and subsequently also orders. The company management of Formtechnik Osterode GmbH & Co. KG too must deal with this complex situation, taking into account the global cost situation, strategic positioning and future expectations. For this reason, the management decided with a heavy heart to close the moldmaking plant in Osterode am Harz. The plant shall be closed down as of March 31, 2023.

Formtechnik Osterode GmbH & Co. KG specializes in the construction of large and complex injection molds. The injection molds are mainly used in the automotive and home appliance industries - and it is precisely these industries that have been under particular pressure for several years due to the global economic situation. The company Formtechnik Osterode GmbH & Co. KG has not succeeded in meeting their sales, cost and thus earnings objectives for quite some time now. Sales and earnings expectations unfortunately remain negative for subsequent years - also due to the overall economic situation.

"We are extremely sorry to have to take this step in the currently tense situation," commented the board of directors Dr. Ralf Zander, Holm Riepenhausen and Thomas Kraus on the difficult decision. The employees affected by the closure were informed within the framework of a works meeting.

Initially, a cooperation partner or an investor has been sought since the middle of last year - sadly without success. The most recent attempts of a management buyout by executives of the company itself have unfortunately also failed. The explicit aim now is to retain the skilled workers, some of whom have been employed for many years, and to find good solutions for everyone.


What are the next steps?

The clear commitment of the Formtechnik Osterode GmbH & Co. KG management to the company's workforce is: Each employee will receive an offer of employment at another company of the Wirthwein-Group. In addition, the management has already asked companies in the vicinity of Osterode am Harz whether they are interested in taking on employees.

A reconciliation of interests and social plan will be negotiated with the Works Council in order to meet the social responsibility for employees for whom a transfer to another Wirthwein location is not an option for personal reasons and who do not receive or who reject an offer from another company.

The last day of production is defined to be March 31, 2023, with processing and clean-up work to be completed by the end of May. The machinery and equipment will be sold, an interested party is being sought for the building.