Alstom and KNDS have reached agreement

The negotiations between Alstom and KNDS Deutschland GmbH & Co. KG (KNDS) concerning the Görlitz site have successfully navigated a significant milestone. On February 5, 2025, both parties executed a framework agreement that formalizes KNDS's acquisition of the site. This agreement was announced in Görlitz, in the presence of Federal Chancellor Olaf Scholz and Saxony's Prime Minister Michael Kretschmer, who provided details regarding the terms and implications of the agreement.

The transition to KNDS is expected to establish a sustainable future for the site and a considerable portion of the workforce. It has been stipulated that between 350 and 400 of the approximately 700 current employees will be retained. Moreover, KNDS will assess the potential to offer career opportunities to an additional 75 employees at various other KNDS locations, while 100 employees will receive job offers at different Alstom sites. Consequently, approximately 580 employees will maintain their employment with either Alstom or KNDS. For those employees who are not covered by these provisions, Alstom will endeavour to facilitate a fair and socially acceptable resolution.

KNDS intends to utilize the Görlitz facility for the production of assemblies for the LEOPARD 2 battle tank and the PUMA infantry fighting vehicle, as well as modules for several variants of the BOXER wheeled armoured vehicle. The transition process will occur gradually and is anticipated to be completed by 2027. The initial employee takeovers by KNDS and the commencement of production are scheduled for this year.

Currently, Görlitz is engaged in the production of double-decker railway carriages, along with various tram projects, which will either continue to be executed locally or be relocated based on project requirements.

Tim Dawidowsky, President of Central & Northern Europe at Alstom, expressed satisfaction with the outcome, highlighting the effectiveness of the solution devised for the site and its employees. He emphasized that the high level of expertise of the workforce in metal processing significantly influenced KNDS's decision to proceed with the acquisition. Florian Hohenwarter, Chief Operating Officer of KNDS, articulated the company’s commitment to expanding its production network in Görlitz through access to exceptionally well-trained specialists.

Federal Chancellor Olaf Scholz commended the industrial heritage of Görlitz, emphasizing the importance of job retention amid Alstom's departure. Prime Minister Kretschmer affirmed that the skills and knowledge of the local workforce were crucial in ensuring the continuation of investments and production at the site.

Mayor Octavian Ursu underscored the role of industrial employment in the regional economy, asserting that job security and prospects are paramount. Jürgen Kerner, second chairman of IG Metall, noted that the current agreement provides employees with much-needed clarity regarding their futures, along with promising career prospects that build upon their existing qualifications.

In summary, this agreement represents a pivotal development for the Görlitz industrial sector, safeguarding employment and fostering future growth within the region.