German Auto Supplier Breyden to Shut Ueckermünde Foundry, Cutting 320 Jobs
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In brief
German automotive-parts maker Breyden plans to close its iron foundry in Ueckermünde, Mecklenburg-Vorpommern, by the end of 2026, ending employment for about 320 people. The company cites falling orders, underused production capacity and high German energy costs; the works council and IG Metall say they were not consulted before the announcement.
What happened
Breyden, the operator of the Eisengießerei Ueckermünde iron foundry in the northeastern German state of Mecklenburg-Vorpommern, told staff at a works meeting on Friday, 2 October 2026, that it intends to close the plant completely by the end of 2026, according to the regional news site Nordkurier. The company put the number of affected positions at roughly 320, made up of about 260 permanent employees plus staff on fixed-term contracts and temporary workers.
Shortly after the announcement, around 200 employees gathered outside the plant in a peaceful protest, the Vorpommern news outlet ms-aktuell.de reported. Nordkurier described the move as a sudden closure that put the whole town into what it called crisis mode.
Why Breyden says the plant can no longer operate
According to Breyden, the decision follows what the company called a long-standing difficult economic situation at the site, driven by declining market demand and insufficient capacity utilization. Management said it had been unable to develop an economically viable long-term perspective for the location despite looking for alternatives, Nordkurier reported.
Nordkurier reported that annual output at the foundry had fallen from about 50,000 tonnes to around 35,000 tonnes. The company also pointed to the gap between German and Asian industrial energy prices as a factor in the site's cost structure.
Industrial electricity costs cited by Breyden
Location
Approximate cost per kilowatt-hour
Germany
20–25 cents
China / India
6–8 cents
Workers and the union react
Works council chairman Clemens Schröder said employees were frustrated, noting that staff had worked numerous extra shifts in recent months while management spoke of pursuing new sales, Nordkurier reported.
Denis Rogge, a union secretary with IG Metall Stralsund/Neubrandenburg, said the union had not been involved beforehand in any search for alternatives and that employees had previously agreed to wage cuts to help protect the plant, according to Nordkurier.
This decision is a huge mess.
— Denis Rogge, IG Metall union secretary, quoted by Nordkurier
Local government response and possible next steps for workers
Ueckermünde's mayor, Tino Spiegelberg, set up a crisis task force and held talks over the weekend following the announcement, Nordkurier reported. A state parliament member, Inken Arndt, proposed a round-table meeting involving the state's economics minister and company management, while a city council faction said it would try to avert the closure or limit its impact. Nordkurier reported plans for further demonstrations at the plant.
Breyden acquired the Ueckermünde foundry from MAT Foundries Europe the previous year, Nordkurier reported. The plant produces brake calipers and brake housings for the automotive industry. About 15 kilometres away in Torgelow, a foundry belonging to the Silbitz Group said it has orders booked through 2030, making components including engine blocks for data-centre generators and diesel ship engines, and that it would try to hire some of the workers losing their jobs in Ueckermünde.
Management and the works council, which has brought in IG Metall along with outside auditors and legal advisers, are expected to negotiate a social plan covering severance and transition support, according to Nordkurier and ms-aktuell.de. Nordkurier noted that public broadcaster NDR had reported a lower figure of 290 affected employees, compared with the 320 cited by Breyden and the news agency dpa.
Questions
When will the Ueckermünde foundry close?
Breyden plans to close the plant completely by the end of 2026, according to Nordkurier.
How many jobs are affected?
Breyden and dpa put the figure at about 320 employees, including roughly 260 permanent staff plus fixed-term and temporary workers; NDR has reported a lower figure of 290, according to Nordkurier.
Why is Breyden closing the plant?
The company cites declining market demand, underused production capacity, falling output (from about 50,000 to 35,000 tonnes a year) and high German energy costs compared with competitors in China and India.
Were unions consulted before the announcement?
No. IG Metall union secretary Denis Rogge said the union was not involved beforehand in any search for alternatives, according to Nordkurier.
Could affected workers find jobs elsewhere?
The Silbitz Group, which operates a foundry about 15 kilometres away in Torgelow with orders booked through 2030, said it would try to hire some of the workers losing their positions in Ueckermünde.
How the world is telling it
GermanGerman regional outlets framed the closure as a sudden shock for the town of Ueckermünde, highlighting that the works council and IG Metall were not consulted beforehand, and placed it within a wider narrative about Germany's automotive-supply sector struggling with high energy costs relative to Asian producers.
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