Draexlmaier Group, a German supplier of car components, will close its first factory in Pitesti, Lisa DLR, and lay off the 800 people who work there, reports local Profit.ro.

The employees of Lisa DLR have been in technical unemployment since February.

The group will invest in its other factories in Hunedoara and Brasov, and will only keep the research & development center in Pitesti. Over 5,500 people are currently working for Draexlmaier Group in Pitesti.

The decision to close the plant is related to the fact that one of the factory’s main customers decided to move the production in Mexico, said Bernd Schmitt, Lisa DLR Autopart general director. Also, “it is a natural reduction in orders for products whose life cycle is nearing completion." Both factors led to lower orders for Lisa, and the company couldn’t secure new projects.

The employees who will be laid off will receive between ten and twelve severance payments.

Meanwhile, Draexlmaier will double the surface of its plant in Hunedoara, and the work will be completed this year. In Brasov, the company will start the work on its third plant. The volume of work has also increased in Timisoara and Satu Mare.

The German group entered the local market in 1993 and has units in five Romanian cities, namely Satu Mare, Pitesti, Timisoara, Hunedoara, and Brasov.

editor@romania-insider.com

(photo source: Ro.draexlmaier.com)