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Business & money · GERMAN BORDER

Foundry near Polish border to close by 2026 with loss of over 300 jobs

Breyden's Ueckermünde plant on the Szczecin Lagoon will shut down, citing falling orders and high costs in the automotive sector.

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A foundry on Germany’s Baltic coast, just across the border from Poland, will shut its doors by the end of 2026 with the loss of more than 300 jobs, according to Bankier.pl. The Breyden plant in Ueckermünde, located on the Szczecin Lagoon, has blamed falling demand in the automotive sector and rising operating costs for the closure.

Staff at the facility were informed on Friday, 2 October, that approximately 290 permanent employees and 30 temporary workers would lose their jobs when the plant ceases production. The foundry has operated for over half a century, manufacturing precision cast iron components for car braking systems, with annual output reaching around 11 million parts.

Management told workers that current production levels make the plant unsustainable. Efforts to secure new clients and boost output have failed to deliver the necessary results, leaving the facility running at only a fraction of its capacity. The company said that continued operation had become uneconomical under these conditions.

Union calls closure a ‘black day’

Trade union representatives and workers have reacted angrily to the announcement. Around 200 people gathered outside the factory the day after the news broke to protest the decision. IG Metall, Germany’s powerful metalworkers’ union, and the works council are now preparing to negotiate redundancy terms and a social package for those affected.

A union spokesman described the closure as a “black day” for Ueckermünde, warning that the impact would be felt across the entire town. The foundry has been a significant local employer for decades, and its disappearance is expected to have wider economic consequences for the community.

Some hope remains for displaced workers. A foundry operated by Silbitz Group in nearby Torgelow, about 15 kilometres away, has said it has orders secured until 2030 and could absorb some of those made redundant. However, it is not yet clear how many positions might be available.

Wider troubles in the foundry sector

Breyden acquired the Ueckermünde plant only last year. The wider Breyden group employs more than 1,400 people and produces around 45 million castings annually across its operations.

The German plant’s troubles mirror difficulties in Poland’s foundry sector. The Cema-Mystal foundry in Poland is also facing closure, with all employees—more than 70 people—set to receive redundancy notices by the end of September, according to the same report.

The automotive industry across Europe has been grappling with weaker demand, a shift towards electric vehicles that require fewer traditional components, and pressure from cheaper imports. Foundries producing heavy cast iron parts for internal combustion engines have been particularly vulnerable to these changes.

What this means for Poles in Poland

The closure of the Ueckermünde foundry, though located in Germany, sits very close to the Polish border on the Szczecin Lagoon and is part of a cross-border economic region where many Poles work or have business ties. Polish workers employed at the plant, or those considering work in the area, will be directly affected by the job losses expected by the end of 2026.

More broadly, the shutdown reflects the structural pressures facing Poland’s own automotive supply sector. Polish foundries such as Cema-Mystal are experiencing similar crises, with redundancies already under way. Workers in Poland’s manufacturing and automotive sectors should be aware that falling demand for traditional car parts—particularly those linked to combustion engines—is reshaping the industry and may lead to further closures or restructuring.

Those affected should monitor announcements from IG Metall and local works councils for details of redundancy packages and retraining support. In Poland, employees facing similar situations should contact their trade union representatives and check entitlements with ZUS, Poland’s social insurance agency, including unemployment benefit and any available retraining schemes.

Source: Bankier.pl — finanse. Written by the newsroom with the help of AI tools, based on the source reporting. Editorial standards