Takata Petri moves production of steering wheel plant from Poland to Arad

Auto components manufacturer Takata Petri has moved production of steering wheels for Mercedes and Honda to Arad, after closing the plant in Walbrzych, Poland, which had almost 600 employees, at the end of August.

Over the last four years, Takata's Romanian business has recorded a steady two-digit rise, which brought the company's turnover to 269 million euros at the end of last year. According to Takata representatives, the decision to move production from Poland to Romania was made as part of a global operations restructuring programme. Following the closure of the Polish plant, 571 employees were made redundant.

"The decision to relocate the plant was made at the end of July, due to a need to adjust production capacities so as to suit market demand. We are not expecting the market to recover enough as to justify keeping the plant (in Poland i.e.)," said Lux Jacob, communication manager of Takata Petri AG.

He added that the relocation process is currently under way, with some of the equipment already installed in Arad. The move will be finalised in a few weeks' time.

The plant in Walbrzych Poland manufactured steering wheels for producers with plants in Central and Eastern Europe, with its main clients being Mercedes and Honda. None of the 571 employees has been moved to another plant, with severance pay granted to employees affected by the layoffs. After closing the steering wheel plant, Takata continues to manufacture seat belts in Poland. Four months ago Takata started a recruitment process, which targeted the hiring of 200 people, after it had made 223 people redundant in January following the reduction in orders from external partners and from Automobile Dacia.

The company has over 5,000 employees in its three plants in Romania, who work in seat belt production in Arad and in airbag production in Sibiu.

"We have so far hired most of the operators. We also hired additional personnel needed for new projects. Although we have moved almost all equipment from Poland to Arad and we need employees for this, too, the hiring will not be proportionate to the layoffs made in Poland. It all depends on the market progression," Jacob said.