Schaeffler to Cut Jobs Under Plans to Close Factory by End of 2026

By Adam Whittaker

German car-parts supplier Schaeffler said it plans to close its Steinhagen factory by the end of 2026 after a review found it was no longer economically viable to keep the site open.

The move comes as European carmakers are grappling with subdued demand for new cars, growing costs and rising competition from Chinese manufacturers.

Schaeffler in November said that it would enact structural measures designed to keep its bearings-and-industrial solutions division competitive, but said Tuesday that a review found any potential measures wouldn't be sufficient to keep production viable at the plant.

The division is confronting a sustained economic downturn, structural issues, and intensified competition, the company said.

Schaeffler plans to stop production at the Steinhagen site by the end of 2026 and close the plant. The product portfolio will be integrated into the division's headquarters in Schweinfurt, it said.

The company said it will hold talks with the roughly 200 shop-floor workers at the Steinhagen site. Any next steps will be undertaken in "the most socially equitable manner possible," a phrase that in Germany generally indicates negotiations with trade unions.

By integrating product portfolio into the Schweinfurt site, Schaeffler expects to retain more than 100 jobs, it said.

Write to Adam Whittaker at adam.whittaker@wsj.com