Based on the current challenging environment in the oil and gas market, Sulzer has decided to take measures to streamline the manufacturing capacities of its pumps equipment division.
Since the beginning of this year, Sulzer's pumps equipment division has been organised in three market-orientated business units of oil and gas, power, and water; a dedicated global parts, retrofit and nuclear services organisation; and a global operations network.
With the new set-up, the company aims to make better use of its capacity and improve quality. At the same time, the oil and gas market remains challenging, leading to low investment levels and project suspensions.
Based on this situation, Sulzer has decided to react to the current market conditions and to streamline the manufacturing capacities in Brazil, the US, and China in its pumps equipment division. By the end of July, about 410 employees were affected by these restructuring measures.
Reducing workforce and closing foundry in Brazil
As a consequence of the division's new global manufacturing network and accelerated by the current economic situation in Brazil, Sulzer decided to reduce the workforce in some of its Brazilian facilities.
By July, about 90 employees of the pumps manufacturing facility in Jundiai were affected. Furthermore, Sulzer decided to close its foundry in Jundiai. Approximately 60 foundry employees will be affected by the closing. The remaining activities at the Jundiai facility ie. the machining shop, the pump assembly and packaging, the test bed, and the service centre, will continue. Moreover, 40 employees at the Curitiba site were laid-off, due to the business slowdown in the country.
Reducing capacity in the US and China
Due to the low market demand in the oil and gas industry, Sulzer reduced the workforce and manufacturing capacity in the US and China. By July, the workforce in the US was reduced by 100 employees in Portland and by around 20 in Brookshire.
China faced reductions of 80 employees in Dalian and about 20 in Suzhou. These reductions affected employees in the shop floor, as well as in administrative functions.
Don Fry is expected to complete the final segment of the project in late June or early July.