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Business for a billion goes into hibernation. 220 people will lose their jobs

Business for a billion goes into hibernation.  220 people will lose their jobs

XEOS representatives confirm that the suspension of plant operations is due to a pandemic that has lasted for a year and a half. “Restricted air traffic around the world, long months of grounding entire fleets and low utilization rates for wide-body aircraft have significantly reduced the demand for aircraft engine repair,” the statement read.

In addition, global demand for servicing GEnx2B engines (powered by Boeing 747-8s wide-body), which were overhauled at the Shroda plant, has decreased. An increasingly longer period of action appears. The date of entry into service of the GE9X engine (the second in the XEOS range) has also been postponed. This postpones the need for renewal by several years.

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“We reached a point where we decided to make a very difficult, but meticulously analyzed, decision to suspend the company’s operations,” says Dietmar Focke of Lufthansa Technik and Maria Deacon of GE Aviation.

Xeos is a joint venture between Lufthansa Technik and GE Aviation. Aircraft engine service and repair center was officially opened in October 2019 in Środa Śląska. The plant was built in 16 months, the investment amounted to one billion zlotys.

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Before the pandemic, there were about 300 people from all over the world working there, today there are 220 people – but there is no work for them. All employees will be restructured. The layoff process begins with a notification to the trade unions, which opens the door to mandatory negotiations.

We announce broad support for employees to help them find their place in the market in this new situation. Details of support will be developed after negotiations with trade unions. We are convinced of the competence and high qualifications of our colleagues, which is why we will promote their candidates to work in the aerospace and related industries, as well as in the Lufthansa Technik and GE Aviation plants, said XEOS Managing Directors Thomas Lange and Rob Burton.

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The problem of hibernation is complicated by the fact that in 2019 construction began on one of the largest test chambers in the world in Uruda Aleska. It will be completed in a few months, but it is not known when it can be used. The company expects that the demand for its services will return to normal only in a few years.

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