Bearing manufacturer Koyo is having a hard time. Since the financial situation in the current year is unfavorable for the company, staff costs should be reduced. The union is skeptical.
In 2015, the crisis seemed to be overcome. The management wanted to reduce the number of employees from 630 to 520 in the branch of the Japanese Jtekt Group - instead, it grew to the current level of 712.
At the staff meeting, Koyo management now reported a predicament: in the past financial year, the company had already recorded a decline in sales of about twelve percent, as pointed out by Dieter Hohenbrink, who is in charge of commercial space in Koyo.
The company was dependent on the automotive industry. Automotive business is reoriented to the production of electric vehicles and hybrid vehicles, and the volume of orders for bearings for traditional cars are falling.
Reorienting to other industries for Koyo is a very difficult task. Previously, the company has always focused on the automotive market.
The parent company is also weakening and Koyo must help herself. It is required to reduce staff costs and save 1.2 million euros, but without cuts.
The company management hopes to reduce costs through Christmas bonuses and incentive payments. If a consensus with the trade union is found, then it will be possible to avoid reductions.
The company Koyo (Japan) produced the first bearings in Osaka in 1921. Today, Koyo is one of the world's leading manufacturers of ball and roller bearings, lip seals, automotive steering mechanisms and sophisticated equipment.
In terms of production, the company ranks fifth in the world among bearing giants. At 33 factories located in Asia, America and Europe, Koyo produces more than 100,000 varieties of ball and roller bearings. The outer diameter of the largest bearing is more than seven meters, and the innermost smallest bearing is less than one millimeter.