Deutsche Aerospace job losses mount

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The Independent Online
FRANKFURT - Deutsche Aerospace, part of Germany's largest industrial conglomerate, Daimler- Benz, is to cut about 11,000 jobs in Germany over the next three years, writes John Eisenhammer.

The number of jobs to be lost is 6,000 greater than the company had previously planned. Six factories are to be closed. Dasa hopes the measures will reduce its financial burden by DM1.5bn ( pounds 625m) a year. Jurgen Schrempp, chief executive, described the moves as a 'reaction to the increasingly unfavourable earning and sales prospects caused by a vast deterioration in prevailing conditions'.

Dasa 'had to act now to establish and maintain the competitive ability of the German aerospace industry in the international market'.

Group turnover is expected to be a little under DM19bn in 1993. Incoming orders at around DM16.8bn, are DM3bn less than planned for. Dasa made a net loss of DM341m in 1992.

Two Dasa sites to be closed are involved in the Airbus programme. The other four are defence-related. In most cases the production will be shifted to other plants, either in Germany or abroad, while a few activities, such as tank equipment, are to be stopped.

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