Drastic move

Plant to Close After Takeover: 330 Jobs Lost!

Just this year, the company Georg Fischer Castings Solutions was acquired by Nemak.(Bild: Georg Fischer)

Huge shock in Herzogenburg in the St. Pölten district: Just a few months after the takeover of automotive supplier Georg Fischer by the Mexican group Nemak, production is being shut down. 330 employees are losing their jobs.

Just at the beginning of the year, the sale of Georg Fischer Castings Solutions—an automotive supplier specializing in die casting—to Nemak had been finalized; shortly thereafter, nothing in Herzogenburg is as it was. The plant is being shut down, and 330 employees are losing their jobs.

Recent market developments and persistently low production volumes have worsened the outlook for the operation in the town of Stift to such an extent that Nemak has no choice but to cease production in early 2027, the industry giant explains in a press release.

Georg Fischer Castings Solutions was acquired by Nemak just this year.(Bild: Georg Fischer)

“The mood was different just a few months ago”
Mayor Christoph Artner also learned of the closure through this announcement. “I had a conversation with management shortly after the acquisition. The mood was quite different back then,” Artner said in an interview with the “Krone.” The city now faces a huge challenge. “330 people and their families are facing great uncertainty,” Artner said.

We are committed to providing the best possible support to all affected employees.

Statement seitens Nemak

Best possible support
Because it is currently unclear whether employees can be taken on by the three remaining companies on the site. “We are committed to providing the best possible support to all affected employees; the process is being designed in close cooperation with local employee representatives and authorities,” Nemak emphasized.   

Furthermore, the city itself—whose growth has always been closely linked to the industrial site—faces major challenges due to the resulting decline in municipal tax revenue. “This hits us particularly hard at a time when municipalities are already facing major financial challenges,” says Artner. We’re talking about a shortfall of around 500,000 euros in the city budget going forward.

Concerns for the site
In addition, concerns are growing about further job cuts at the site. In its heyday, well over 1,500 people were employed in the metal industry there; the former Grundmann Brothers operation has since been split into four companies. Following Nemak’s departure, only about 600 people would remain at the site.