July 29, 2019 / 3:53 PM / a year ago

UPDATE 1-Andritz to cut 500 jobs at German subsidiary Schuler

(Adds detail, CEO comments)

VIENNA, July 29 (Reuters) - Austrian engineering group Andritz plans to cut 500 jobs in Germany at its subsidiary Schuler AG to deal with the impact of a slowing car industry, it said on Monday.

Schuler is one of the world’s largest manufacturers of press lines and automation systems for the automotive and metal processing industries. It generates around 75% of its 1.2 billion euros ($1.34 billion) annual revenue from the automotive sector, a company spokesman said.

“The planned measures are painful but necessary because, from today’s perspective, there are no signs of a sustained recovery on the international automotive market,” said Andritz Chief Executive Wolfgang Leister.

Schuler currently employs 6,500 people worldwide, of whom just under 4,200 work in Germany, according to Andritz.

Demand for the products Schuler makes in Germany is also increasingly shifting to Asia, Schuler said in a statement. It said it expected production at its Chinese and Brazilian sites to increase.

Andritz plans to reduce Schuler’s German manufacturing capacities by shutting down individual production and assembly lines, but no production site will be closed, the spokesman said.

The total costs for the measures at Schuler were expected to amount to 85 million euros ($94.57 million). Andritz also plans a 25 million euro write-down of goodwill.

The Austrian group expects profitability at Schuler to improve gradually from 2021. ($1 = 0.8987 euros) (Reporting by Kirsti Knolle, editing by Riham Alkousaa and Emelia Sithole-Matarise)

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