Forklift manufacturer Jungheinrich is closing a German plant and cutting hundreds of jobs. This is due to a massive price attack by Asian suppliers on the global market. However, the closure affects a production facility considered profitable. (bild: 14.02.26)
Plant closure by March 2027: Lüneburg loses manufacturing, only some jobs remain
Production at the Lüneburg plant will cease by the end of March 2027 at the latest. 160 employees will lose their jobs there, but the site will not be completely empty. Design and administration will continue with 125 positions.
The cuts are more extensive because Jungheinrich is not only reducing its workforce in Lower Saxony. “Around 1,000 jobs are being cut worldwide. About half of these are in Germany,” a spokesperson said. The cuts will hit Lüneburg and Norderstedt hardest, and jobs will also be eliminated at the headquarters in Hamburg and in the sales organization.
Global Reduction at Jungheinrich – Germany Particularly Hard Hit
The reductions affect the entire structure of the company. Hundreds of jobs will be lost at the Lüneburg and Norderstedt plants, while Hamburg and the sales department will also see job losses. “The other approximately 500 positions are distributed across the 41 international organizations,” the spokesperson added.
A social plan has now been agreed upon for the employees in Lüneburg, thus ending the struggle for job security. Severance packages have been agreed upon, and a transfer company will facilitate the transition to new jobs. A Jungheinrich spokesperson called the agreement a “socially responsible solution.”
Social plan yes, plant closure no – IG Metall attacks the strategy
Jungheinrich is simultaneously presenting the agreement as a step in its restructuring. The agreement is “an important step” in the transformation program. Nevertheless, the plant closure remains the core of the conflict.
IG Metall views the social plan as the result of tough negotiations, but it does not accept the decision. “At Jungheinrich in Lüneburg, we are not talking about a restructuring case, but about abandoning profitable production,” said Lennard Aldag of IG Metall Celle-Lüneburg. This suggests that the decisive factor is not losses, but a new corporate logic.
Profit Figures, Growth Target, and a Strike with a Clear Message
The company’s financial figures are adding fuel to the fire, as Jungheinrich is not presenting itself as a company in crisis. In 2024, the publicly traded Jungheinrich AG achieved a profit of €289 million on sales of approximately €5.4 billion. The company aims to increase sales to €10 billion by 2030, yet the number of jobs is declining.
The workforce has already made its position clear with a protracted labor dispute. According to the union, production workers have been on indefinite strike since November 20. Production was repeatedly halted for over 80 days, impacting customers and supply chains.
Price Pressure from China and a Partnership That Is Shifting the Market
The trigger lies in competition, as many buyers prioritize price. While products from Chinese suppliers are not technically comparable, they are significantly cheaper. In the mid-range application segment, forklifts from Asia cost only about half the price of Jungheinrich models, putting even strong brands under pressure.
At the same time, Jungheinrich is taking an unusual approach and partially incorporating the low-cost segment into its own product range. In a joint venture with EP, the Hamburg-based company has been distributing vehicles from China’s third-largest manufacturer in Europe since autumn. This shifts the company’s focus while traditional production capacities in Germany are being reduced.