VDL to Close Business Unit

This article was last updated on January 5, 2024

Canada: Oye! Times readers Get FREE $30 to spend on Amazon, Walmart…
USA: Oye! Times readers Get FREE $30 to spend on Amazon, Walmart…

VDL to Close Business Unit, Putting 140 Jobs at Risk

VDL is discontinuing the business unit that supplies cast iron products. As a result, 140 employees will lose their jobs. VDL wants to guide the affected employees to new work, whether or not within the company.

The VDL Castings division, which is located in Hoensbroek, Limburg, makes cast iron products for, among other things, trucks, machines, and the railway. But the group is stopping because it is encountering various problems.

Challenges Faced by VDL

Substantial investments are required to make the foundry viable again. In addition, there are very strict environmental requirements that the foundry must meet. According to VDL, these requirements are even unattainable in a number of cases.

In addition, there is a lot of competition from within the European Union, which, according to VDL, receives a lot of state support. And competitors from outside the EU are less affected by high energy prices because the countries in question have not imposed sanctions against Russia, and the companies can therefore use cheaper energy.

Steps Taken and Future Plans

The management has submitted an application to the works council to stop and has informed the staff, trade unions, and benefits agency UWV about this.

VDL wants to completely close down the foundry during the course of this year. The 140 employees will therefore lose their jobs. The group wants to guide them to a new job and also looks at positions within its own company.

Support for Affected Employees

VDL’s decision will have an impact on the livelihoods of 140 employees. As a responsible corporate entity, the company aims to provide comprehensive support to those affected. This includes not only helping them find new job opportunities outside the company but also exploring possibilities for reassignment within VDL.

Efforts will be made to ensure that the affected employees receive necessary assistance during this transition period. VDL recognizes the importance of addressing the human aspect of such business decisions and is committed to treating its employees with empathy and support.