Georg Fischer Automotive announced this week it plans to end aluminum diecasting operations at its Georg Fischer Druckguss GmbH facility in Munich, Germany. Plants at Herzogenburg, Altenmarkt, and Gleisdorf, Austria, will continue the product line.

Georg Fischer Druckguss GmbH in Munich produces aluminum diecastings for passenger and commercial vehicles, escalators, and moving walkways. The automotive components it include structural parts, and housings for gears, clutches, and valves.

The company explained that an internal analysis of the operations showed the Munich plant was less efficient thanks to poor organizational structure and higher labor costs. The decision to relocate the aluminum diecasting operations is meant to ensure long-term competitiveness in that product segment, Georg Fischer stated, and are part of a broad effort to consolidate GF Automotive’s market position in Europe.

The Munich closing will be organized according to a negotiated settlement yet to be completed with employee representatives. About 340 workers will be affected, GF Automotive stated. Customers will continue to be supplied, as before, it announced.