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Brandenburg Economy Minister Expects Positive Development Despite Goodyear Job Cuts

In Fürstenwalde, job cuts at the tire manufacturer Goodyear are scheduled to begin in 2025. State politicians and employees are fighting to preserve the location.

Photo: dpa/Soeren Stache

The Brandenburg Economics Minister Jörg Steinbach (SPD) expects overall positive economic development in Brandenburg in 2024. Nevertheless, small and medium-sized companies in the automotive supply industry in particular, which, for example, supply parts for combustion cars and have not managed the transition to electromobility, could run into problems. “I fear that some companies will disappear from our Brandenburg map,” said Steinbach in Potsdam.

With a view to the expected positive development, he said that further settlements would take place in 2023 that were not yet reflected in the good balance sheet, such as the commissioning of a BASF factory in Schwarzheide. Tesla also wants to expand its production, and in January the railway plant in Cottbus will add 400 jobs. The minister said he assumes that industrial settlements will also take place in 2024.

According to statistics, in the first half of 2023, Brandenburg’s economic output grew more strongly than in any other federal state. The gross domestic product, adjusted for prices, increased by six percent compared to the same period last year.

A possible settlement of the Stuttgart car manufacturer Porsche was recently discussed in southern Brandenburg. According to information from Porsche in the fall, the construction of another battery factory next to the location in Baden-Württemberg should be examined. In the summer, the chemical giant BASF put a production plant into operation in Schwarzheide for cathode materials as a raw material for electric car batteries.

Steinbach also referred to the difficult situation of the tire manufacturer Goodyear, which wants to close tire production in Fürstenwalde by 2027. In total, around 750 jobs will be gradually eliminated from 2025. The state government is committed to preserving the traditional location in Fürstenwalde. A working group is scheduled to start work in January.

The rubber industry in Germany has a structural problem that is not limited to Goodyear, said Steinbach. According to Steinbach, higher raw material prices and more expensive supply chains as well as increased energy costs bring significant disadvantages compared to locations in Southeast Asia. “It will be very difficult to have a positive influence on the industry.” Even an option, which was discussed primarily by the union, of producing tires for the nearby Tesla factory would probably not be the hoped-for “game changer” that would improve the location’s situation . Steinbach said that manufacturers don’t make a lot of money by initially equipping cars with tires because the car industry is driving down prices.dpa/nd

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2023-12-26 16:11:26
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