DUESSELDORF Aug 29 Germany's Rheinmetall
plans to cut more than five hundred jobs at its battle
tanks unit, as it restructures to increase profits at its
defence business, a trade union official told Reuters on
Peter Seeger, IG Metall head in the northern city of Kiel,
said more than 500 jobs at the production plants in Kiel and the
central city of Kassel would be slashed.
The battle tanks business, which has annual sales of nearly
340 million euros ($427.26 million), employs around 1,300 staff.
It has manufacturing facilities in Kiel and Kassel as well
as a plant in the southern city of Gersthofen, which Seeger said
employed 50 staff and would be closed down.
A spokesman for the maker of defence equipment and
automotive components, said job cuts were "inevitable", without
giving any further details.
Seeger said the union planned to present an alternative plan
In August, Rheinmetall announced a revamp of Rheinmetall
Landsysteme (RLS), which makes battle tanks, mine clearing
systems and howitzers.
Operating profit at Rheinmetall's defence division, which
includes RLS, fell to 4 million euros from 38 million in the
first three months of this year, partly on one-time effects and
lower sales of its most profitable products. It does not publish
figures for RLS.
($1 = 0.7958 euros)
(Reporting By Anneli Palmen; Writing by Marilyn Gerlach;
Editing by Helen Massy-Beresford)