Rosenberger Toschek negotiates solution to continue business operations of General Electric in Germany.

Industry experts provide a viable solution for the preservation of sites and jobs.

Mannheim/Bexbach/Frankfurt/Lausanne, 11/12/2016 – Gas-turbine and turbine-blade production and related areas of General Electric Germany (GE) may be saved by a consortium of experienced consultants and industry partners. The Rasenberger Toschek (RT Swiss) consultancy firm has presented a concrete plan that prevents impending closures and offers viable solutions.

This plan was preceded by an initiative of the Ministry of Economy Saarland that was dedicated to saving jobs at the GE site in Bexbach. The focus is on retaining the sites and securing jobs. Specifically, the looming mass layoffs would be avoided, and a new home with a sustainable future and profitable opportunities for personnel would be created for the Alstom site.

It is against this background that Rasenberger Toschek gathered a team of experts that developed a friendly and at the same time realistic solution for the future of the affected parts of the company. The team included an international player, who will function as an industry partner, and the renowned BMI Lab/BGW (St. Gallen) institute as strategic operating partners. The difficult situation with its complex conditions was already analyzed early on, and realistic and resilient scenarios were developed for the future. Depending on the solution, the implementation of all of the steps could take from 18 to 24 months.

Background and initial situation

At the end of 2015, GE acquired Alstom’s gas-turbine business. The EU Commission required sale of certain production facilities for reasons of competition. The Belfort (France) site thereby become the manufacturing center for GE gas turbines in Europe. In addition, market developments point to stagnation or at best low growth, which means excess capacity in this area for GE.

Currently, GE Germany’s activities in gas-turbine and turbine-blade production and related areas are either up for sale or facing closure. The Mannheim site (turbine production), with approx. 450 jobs, and the Bexbach site (turbine-blade production), with approx. 200 jobs, have been hit by this situation.

Plan and future steps

Under the leadership of Rasenberger Toschek, the team developed, compared and tested different scenarios for saving the sites and the associated jobs. These included measures such as classic restructuring, reorganization of the business and sale of the company, which combined would allow the sites and jobs to be saved. From the beginning, these options were shared with important stakeholders including management, employee representatives, the union, potential industry partners and political representatives.

In addition to the inclusion of an industrial partner, one part of the solution is the revitalization of the current core business, for which the team developed comprehensive restructuring and an innovation process for the development of new business models.

Rasenberger Toschek is taking over the project management office for the current project, which will be responsible for the coordination of the team. Some additional duties include the economic overhaul, development and implementation of possible restructuring plans as well as the execution of processes for transfer of the business.

The BMI Lab/BGW (St. Gallen) will assist the team in the systematic implementation of the innovation process. As a spin-off of the Institute of Technology Management at the University of St. Gallen, it offers science-based and practical approaches to the systematic development of business models using its “business model navigator.”

An industrial partner with over 10 billion euro in revenue and proven experience in iron and steel processing and production will form the industrial backbone for the further development of the current product and production program. Its focus on international growth markets will enable market entry in an international environment.

About Rasenberger Toschek

Founded in 2005, the consulting company has operations in Europe, Asia and the USA. Currently, an international team of 25 consultants provides support for medium-sized and large companies in complex rescue scenarios. These jobs are carried out primarily for companies in Germany, Austria and Switzerland. The solutions are developed and implemented with international partners.

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