The wagon factory from Arad is closed. Americans at Greenbrier say that the costs have increased and that the unit is old. 700 people will be fired
Hangar of a wagon factory (Maksim Safaniuk photo source, dreamstime.com)
The American Greenbrier group, which has been holding the Freight Wagon Factory Astra Rail Industries from Arad, announces that it has ceased production operations at the unit in the western country.
- The factory is different from the famous Astra Vagoane Călaturi, the one that produces the Imperio trams.
On Monday, April 7, the collective dismissal procedure was announced at the County Agency for Employment Arad. Of the total of 776 employees will be affected by the collective dismissal procedure a total of 699 employees. The collective dismissal procedure will start at the end of June, writes the publication Aradon.ro.
Greenbrier motivates the decision to close the wagon factory through “increasing pressures at the industry”, but also invokes the increase of operational costs. The group also has factories in Caracal and Drobeta Turnu Severin, but these units continue the production.
At the Astra Rail factory there were protests, and in 2019 there were also strikes related to the wage increases that were under promises.
Astra Rail Industries has 2,300 E employees at the three factories in Romania, and the turnover passed a billion lei last year.
What Greenbrier says about the factory closing
- Due to the difficult and accelerated challenges on the local market, Greenbrier Romania intends to cease its production operations at the Arad factory. This decision was influenced by several factors, including the increasing pressures in the profile industry, the growing operational costs compared to the other factories, but also the logistical constraints related to the age of the unit and the urban environment.
- Greenbrier Romania will continue to strengthen its production operations in the factories in Caracal and Drobeta Turnu Severin. This strategic realization strengthens the long -term commitment of Greenbrier to the production line in Romania. The company intends to continue to invest in these work units to support their long -term development. The existing orders will be honored from these locations, and the acquisition and logistics strategies will be adjusted according to needs.
About Greenbrier and Astra
The American Greenbrier group and the company Astra Rail, which owned the wagon factory in Arad, announced in October 2016 a merger that resulted in a company called Greenbrier-Astra Rail.
The Americans owned 75% of shares in the new company and paid 60 million euros. The two companies received all the necessary authorizations from the authorities in the summer of 2017.
In Arad wagons have occurred since 1891.
Photo source: dreamstime.com
