After protracted negotiations, automotive supplier Musashi and the IG Metall union reached an agreement on a comprehensive package, but this agreement offers no future for Hann. Münden. Despite the compromise, the plant will close, resulting in massive job losses. Around 190 people will lose their jobs in the town situated at the confluence of three rivers, while IG Metall, in return, has agreed to refrain from industrial action. This decision will therefore not only burden the workforce but also significantly impact Hann. Münden as a business location. Musashi offers a wide range of precision forged parts as well as semi-finished and ready-to-install components and assemblies for the automotive industry. (hna: 09.12.25)
Automotive supplier reaches agreement with IG Metall after lengthy negotiations
Several rounds of talks had previously yielded no tangible results, but an agreement was finally reached through external mediation. These talks concluded in Frankfurt after the industrial union announced renewed strike action. The agreement therefore also includes the cancellation of protests at the Hann. Münden plant. For the automotive supplier, planning certainty was paramount, while IG Metall sought to stabilize at least parts of the production process.
As part of the agreement, the company secured jobs at other locations. Around 180 positions will be retained in Lüchow, and a site guarantee has been issued until the end of 2028 for a portion of the workforce. Additionally, the automotive supplier is supporting laid-off skilled workers in their search for new employment, which is intended to at least mitigate the impact of the job cuts.
Plant closure follows a fixed winding-up plan
For Hann. Münden, however, this assurance is irrelevant. The plant closure is a done deal and follows a clearly defined timeframe. The site will be completely wound down by the end of March 2027, while machinery and production lines are transferred to other plants. Bad Sobernheim, Bockenau, and Grolsheim will thus benefit from the relocation of production.
The associated job cuts will be implemented in stages. Layoffs will occur on three separate occasions in 2026, each with a uniform seven-month notice period. This structure applies to all restructuring locations, ensuring that the job losses are not abrupt but staggered. For many families in Hann. Planning remains difficult for Münden, as alternatives in the region appear limited.
Economic arguments are weighed against social consequences.
From the company’s perspective, the agreement significantly reduced risks. CFO Simon Beckers emphasized: “This eliminates an incalculable economic risk. We remain a reliable and predictable partner for our customers, even in an extremely challenging situation for the industry.” These words underscore the automotive supplier’s focus on stability and competitiveness, even if they do not diminish the social consequences of the plant closure.
The role of the IG Metall union remains ambivalent. On the one hand, the organization accepted the closure; on the other hand, it secured guarantees for other locations. The industrial union explained this balance at a members’ meeting and pointed to the limited room for maneuver in light of the industry crisis.
Hann. Münden Faces Structural Change
The town of Hann. Münden is now facing a profound transformation. Mayor Tobias Dannenberg clearly assessed the situation: “The impending closure of the company will hit our town hard, especially the affected employees and their families.” He coupled this assessment with the hope for socially responsible solutions that would open up new perspectives and mitigate hardship.
Despite these appeals, the plant closure marks a deep turning point. The loss of industrial jobs will weaken the economic foundation of the three-river town in the long term. Regional service providers and suppliers will also feel the effects. This case exemplifies how decisions made by an automotive supplier can shape entire regions, even when a formal agreement with the IG Metall union appears to have been reached.