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Derby Germany Closes Rostock Facility

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CLOPPENBURG, Germany (19 Mach) – The management of Derby Cycle Works GmbH Germany and the unions have agreed on the closure of the Derby factory in Groß Schwaß, Rostock. The Derby factory will close on 31 March 2002 (=within two weeks!) with a provision for its 102 employees. The Labour Court agrees. Derby Cycle Works […]

CLOPPENBURG, Germany (19 Mach) – The management of Derby Cycle Works GmbH Germany and the unions have agreed on the closure of the Derby factory in Groß Schwaß, Rostock. The Derby factory will close on 31 March 2002 (=within two weeks!) with a provision for its 102 employees. The Labour Court agrees.
Derby Cycle Works GmbH will invest in a temporary company that will employ all personnel during the oncoming twelve months, helping them to find new jobs, and training and qualifying them for these. According to the Derby management the decision to close the Groß Schwaß, Rostock factory was taken because of the “catastrophic sales situation in Germany during the past 18 months”. The increasing competition from cheap eastern European and Asian producers has also influenced this decision. Due to this situation, the management couldn’t find investors (neither in Germany nor abroad) for Groß Schwaß to continue. The management expresses its regrets over the loss of 102 jobs, but thinks the decision taken was the best under the given circumstances. (OB)

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