MAN's €59M Salzgitter deal secures jobs and modernizes production until 2035

The MAN production site in Salzgitter is set for a major transformation after a €59 million investment deal was agreed. The funding will modernise facilities, adapt product lines, and expand manufacturing capacity. Workers will also benefit from job security guarantees and improved pay conditions until at least 2035.

The agreement follows negotiations with unions, including IG Metall, which had raised concerns about potential job losses in the coming years.

Under the new plan, Salzgitter will receive a dedicated industrial roadmap to safeguard core production areas and grow its spare parts logistics. Key components—such as wheel flanges and steering knuckles for non-driven axles—will continue to be made at the site permanently. A newly formed Steering Committee will oversee future product development and industrial strategy.

Job security has been guaranteed for all employees until the end of 2035, with a possible extension to 2040 if production demand stays high. The company has also ruled out forced redundancies, instead relying on natural staff turnover through retirements and voluntary departures. However, IG Metall has warned that, under one disputed scenario, employee numbers could still fall below 852 by 2032—down from the current 2,100 to 2,161.

Financial benefits for workers include retroactive payments to cover any lost wage components, ensuring no union members face disadvantages. Starting in 2025, a profit-sharing scheme will begin, with the first payouts expected in May 2026. Additionally, all full-time, part-time, and trainee staff will receive an annual IG Metall membership bonus of €156 net each summer.

The site will maintain its apprenticeship quota at a minimum of two percent of the core workforce. The transformation process will follow clear social guidelines, with unions and management working together to shape the changes.

The €59 million investment secures Salzgitter's role in MAN's production network while protecting jobs and wages for over a decade. With no forced layoffs planned, the site will adapt through natural workforce changes and strategic upgrades. The new profit-sharing and bonus schemes will provide additional financial stability for employees.