Motherson to Shut Down Judenbach Facility After Dr Schneider Group Acquisition

Samvardhana-Motherson
Image Courtesy: Samvardhana Motherson

Samvardhana Motherson International Ltd (SAMIL) announced that its subsidiary, Samvardhana Motherson Automotive Systems Group, will close its Judenbach plant in Germany—one of the facilities acquired as part of the Dr Schneider Group takeover in October 2023. This closure was anticipated when Motherson acquired the company, which was undergoing insolvency proceedings at the time. In preparation, the group had already begun working with major clients on restructuring plans aimed at improving long-term efficiency and competitiveness.

In a regulatory disclosure to the BSE and NSE, the company confirmed that the Judenbach plant’s shutdown will have no financial impact, as it was already accounted for in the acquisition strategy. Ongoing production from the plant will be shifted to other Motherson facilities in the region.

The Judenbach site contributed a minor portion—just 0.27%—to SAMIL’s overall revenue and only 0.19% to its net worth as of March 31, 2024. The plant reported an annualized revenue of ₹2,668 million (€27.3 million), in comparison to SAMIL’s consolidated revenue of ₹986,917 million.

Discussions with the local works council are expected to begin in May 2025, with the full closure scheduled for completion by Q2 of fiscal year 2027. The company said that by consolidating operations in other regional plants, it will be able to streamline production while maintaining service levels to customers.

The acquisition of Dr Schneider, a German manufacturer known for producing interior automotive components, was part of Motherson’s plan to diversify its portfolio and strengthen its footprint in Europe. Motherson emphasized that the closure process will comply fully with local regulations. Machinery and equipment from the Judenbach plant will be reallocated for use in other operations across the group.

Samvardhana Motherson International Limited, formerly Motherson Sumi Systems Limited, was founded in 1986 as a joint venture with Japan’s Sumitomo Wiring Systems. The company was listed on Indian stock exchanges in 1993 and has since grown into a global supplier of automotive components for original equipment manufacturers (OEMs).

Operating from over 400 facilities in 44 countries, SAMIL has also diversified into sectors including technology and industrial solutions, medical and healthcare, aerospace, and logistics. Today, the company stands as India’s largest automotive components manufacturer and ranks among the world’s top 15 suppliers to the automotive industry.