Half of Siempelkamp’s Workforce to Go as German Machinery Plant Abandons In-House Production

The machinery builder Siempelkamp is slashing nearly half its jobs at its Zweibrücken site, a blow to a region already reeling from a string of industrial closures. Of the 282 positions in the Bubenhausen district, 129 are slated for elimination.

The company is scrapping its own manufacturing operations at the plant, which previously operated under the Pallmann name. Instead, the site will focus exclusively on final assembly, service, and spare parts. Management blames a persistently weak global market and mounting price pressure from Chinese competitors.

Employees had already been working reduced hours for months. Now roughly half of them face dismissal. The cuts strip the plant of most of its industrial capacity.

Political and Union Response

Marold Wosnitza (SPD), the mayor of Zweibrücken, was informed of the plans on 1 June 2026. “This is a heavy blow for Zweibrücken,” he said in a statement. He has since opened talks with Siempelkamp’s management, the works council, the IG Metall union, and the state government of Rhineland-Palatinate.

State lawmaker Daniela Stauch (SPD) and federal lawmaker Angelika Glöckner (SPD) have also joined the effort. IG Metall and the works council are vowing resistance. The union says workers are in shock and is working with the Technology Advisory Service (TBS) on an alternative plan to save jobs.

Legal Triggers

Because the planned layoffs surpass the thresholds for major operational changes, several legal requirements kick in. With more than 100 employees affected, Siempelkamp must file a mass-dismissal notification under Section 17 of the German Protection Against Unfair Dismissal Act (KSchG).

The works council must be fully involved. Negotiations over a social plan and a reconciliation of interests are governed by the Works Constitution Act (BetrVG). The announcements are not yet formal termination notices, but once individual letters are sent, affected workers have three weeks to file a wrongful dismissal claim.

Regional Crisis

The Siempelkamp cuts add to a dismal run for industry in southwestern Germany. The home-appliance maker Groupe SEB recently said it would shut production at three German sites—Hayingen, Riedlingen, and Diez—affecting about 250 jobs.

On 12 June 2026, industrial groups in neighbouring Saarland are staging a large protest. They are demonstrating against the uncertain future of major projects such as “Green Steel”, which is struggling with rising costs and shifting EU regulatory conditions.

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