Automotive supplier Grammer (Amberg / Germany; www.grammer.com) has founded a new, wholly owned subsidiary for its railway operations with the aim of increasing flexibility in handling international projects. The new company, Grammer Railway Interior, was created on 15 September 2009 and will bundle the operational units that manufacture seats for the rail sector. It will officially start operating on 1 January 2010.

A company spokesman told Plasteurope.com that Grammer had been mulling this move for a long time already, wishing to align these operations to the “completely different nature of this project-oriented business.” This project-oriented nature sets the rail business apart from the automotive sector, which is dominated by serial production. The transfer of these operations to a new entity does not necessarily mean they will be divested.

Europe’s rail business market is dominated by three major players with roughly equal sales. People familiar with the segment have been expecting a consolidation for some time. Grammer’s main competitors are Antolin (Burgos / Spain; www.grupoantolin.es) and Compin (Courbevoie / France; www.compin.com). Grammer says it could imagine acquiring parts of either competitor’s business.

Grammer aims to cut 200 positions by year’s end, reducing its workforce to 7,000 in line with previous announcements. The planned job cuts mainly affect the Haselmühl facility where seats for off-road vehicles and the railway sector are produced.