As part of the implementation of its production strategy, DEUTZ AG has sold its pipe manufacturing operation at the Cologne-Deutz site to T.ERRE Deutschland GmbH with effect from April 1, 2013. The parties have agreed not to disclose the purchase price. Outsourcing pipe manufacturing will optimize the value chain.
“For DEUTZ AG, outsourcing the pipe manufacturing business will bring significant efficiency improvements which are going to have a positive impact on our supply chain. We are also expecting to benefit from innovations made by our partner T.ERRE,” explains Gerhard Gehweiler, Senior Vice President of Purchasing at DEUTZ.
For the 88 employees affected, a continued employment, either with T.ERRE or in other parts of DEUTZ AG in Cologne, will be provided. T.ERRE will be manufacturing pipes at the Cologne-Deutz site until the end of 2014 and at the same time will set up a new production facility with growth prospects in the immediate vicinity. DEUTZ and T.ERRE have signed a long-term supply agreement for pipes and conduits.