German automotive supplier ZF Friedrichshafen plans to close its manufacturing plant in central Slovakia until mid-2026, a move that will gradually affect approximately 250 workers. The decision is part of a wider cost-cutting and restructuring initiative, as the company responds to declining European car production and broader financial pressures.
The Detva facility, which produces components for steering and suspension systems, will have its operations transferred primarily to ZF’s site in Levice, another town in southern Slovakia. According to Marta Surowiec, the company’s spokesperson for Eastern Europe, the transition will be “carefully managed” to ensure continuity for customers and support for employees – although no details were given about the nature of that support.
Employees were reportedly informed of the closure late last week, during the peak of the summer holiday season, prompting criticism over the timing. Some workers were told they would receive two months’ severance pay above legal requirements, but this had not been confirmed in writing. The company said that no layoffs were expected before early 2026.
The Detva plant opened in 2018 and was part of ZF Slovakia, which operated five other sites in the country – in Trnava, Levice, Komarno, Sahy and Nove Mesto nad Vahom. ZF employs more than 4,000 people across Slovakia and Surowiec emphasised that the country remained a key part of the company’s European production network.
The closure in Detva follows the 2023 shutdown of Punch Precision Detva, a critical local supplier that provided aluminium forgings and chassis components. The supplier’s closure eliminated a key cost advantage for ZF’s Detva operation, and despite efforts to stabilise production, the plant could not achieve sufficient profitability, Surowiec said.
The decision also reflects broader structural challenges.
“The European automotive market has been in long-term decline,” Surowiec noted, adding that vehicle production volumes in 2025 were projected to be around 30% lower than in 2018.
While ZF is cutting back in Detva, it is simultaneously investing elsewhere in Slovakia. Earlier this year, the company announced a EUR 133 million investment in its Trnava site to produce electric motors for brands including Porsche, Mercedes, BMW and Stellantis. The Slovak government awarded ZF over EUR 11 million in investment incentives, largely in the form of tax relief and asset subsidies. The investment is expected to retain, but not expand, the existing workforce of 1,300 at the site.
Globally, ZF Friedrichshafen is under mounting financial pressure. The company announced last year that it would cut up to 14,000 jobs in Germany until 2028 and potentially close up to 15 plants. Further cuts have been reported in the US, China, India and other parts of central and Eastern Europe. The company aims to reduce global costs by EUR 6 billion between 2024 and 2026, amid high debt levels and shifting industry demands. (The Slovak Spectator)