Alstom S.A: Alstom and KNDS have reached agreement: a secure future for the industrial site in Görlitz in Germany

• Sustainable prospects for the majority of staff at the site
• First staff takeovers and start of production at KNDS already planned for 2025

5 February , 2025 – The negotiations between Alstom and KNDS Deutschland GmbH & Co. KG (KNDS) about the Görlitz site have reached an important milestone. On 5 February, 2025, both sides signed a framework agreement on the takeover of the site by KNDS. In the presence of Federal Chancellor Olaf Scholz and Saxony's Prime Minister Michael Kretschmer, the companies announced details about the contents and background of the agreement in Görlitz today.

The takeover by KNDS creates a sustainable perspective for the site and a large part of the workforce: it has been agreed that 350 to 400 of the approximately 700 employees will be taken on. In addition, KNDS will examine whether to offer up to 75 additional employees career prospects at various KNDS sites. Moreover, 100 employees will receive job offers at other Alstom sites. As a result, around 580 of the 700 employees will find continued employment at Alstom or KNDS. For those employees to whom this does not apply, Alstom will find a fair and socially acceptable solution.

KNDS plans to produce various assemblies for the LEOPARD 2 battle tank and the PUMA infantry fighting vehicle in Görlitz, as well as modules for a number of variants of the BOXER wheeled armoured vehicle. The transition of the site will take place gradually and is expected to be completed in 2027. The first personnel takeovers by KNDS and the start of production are scheduled to take place this year.

Production of double-decker trains is currently underway in Görlitz. Various tram projects are also currently being implemented. Depending on the status of the project, these orders will either be processed in Görlitz or relocated.

Tim Dawidowsky, President Central & Northern Europe at Alstom: “We are pleased that we have succeeded in finding a good and sustainable solution for the site and for the employees. I am particularly pleased that the high level of expertise and qualification of the employees in metal processing has been recognised and has played a decisive role in the takeover by KNDS. It also shows that the team here in Görlitz stands for quality. The majority of the team has a very secure future at KNDS. Our goal is to create the best possible career prospects for the staff."

Florian Hohenwarter, COO of KNDS: "With the new Görlitz location in the KNDS production network, we are expanding our capacities with a highly specialised production facility. In Görlitz, we have access to exceptionally well-trained specialists who enable us to manufacture high-quality assemblies for our vehicles. We look forward to the new team and to shape the future together here at the site.“

Federal Chancellor Olaf Scholz: "Görlitz can be proud of its long history as an industrial city, and today a new chapter in this begins. It is very good news that industrial jobs will be retained even though Alstom is leaving Görlitz. The excellent employees are the main reason why KNDS Deutschland will produce here in Görlitz in the future and secure jobs. With their skills, hard work and qualifications, they ultimately tipped the scales in favour of KNDS locating its production here in Görlitz."

Michael Kretschmer, Prime Minister of the Free State of Saxony: "It is good and important that the talks between Alstom and KNDS have been successful. Above all, the knowledge and skills of the workforce here were the deciding factors for the project to continue, that future investments and production remain at this location. With the signing of the framework agreement between the two companies, a new start for this traditional Görlitz industrial location is secure. This will protect industrial jobs and know-how and enable industrial value creation in the future. This is good for the employees, for the city and therefore for the entire region."

Mayor Octavian Ursu: "The industrial jobs in our city and the region are the backbone of our economy. They are not only an important driver of prosperity and development, but also underpin the livelihoods of many families. It is our top priority that these jobs are secure and offer the workforce a reliable perspective. The industrial location of Görlitz needs a sustainable and secure future."

Jürgen Kerner, second chairman of IG Metall: "After years of uncertainty, the employees finally have clarity. At IG Metall, we were actively involved at all levels in the search for an investor for the Görlitz site. The solution now found offers the majority of employees good career prospects - similar to their previous jobs. In their future, they will be able to build on and expand on their professional experience and previous qualifications. This will be possible with good, collectively agreed working conditions and without the detraction of periods of unemployment. It is now important that everyone involved keeps their promises and reliably organizes the transition in the interests of the workforce."

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