Alstom Kassel plant sale talks put union concerns in focus

Alstom Kassel plant sale discussions remain at an early stage. The company is considering a possible transaction involving its locomotive manufacturing site in Kassel, Germany. The plant has one of the longest railway production histories in Europe. Alstom says no final decision has been made. This is reported by the railway transport news portal Railway Supply.

German publication HNA reported that Alstom has opened talks with potential buyers over the future of the Kassel facility. Around 800 people work at the site. It produces locomotives, including variants of the Traxx platform.

Employees were informed at the end of April. The name of the interested company has not been disclosed because of a confidentiality clause.

The Kassel locomotive plant is tied to almost 180 years of industrial activity. It is also linked to the former Henschel factory, a historic name in German locomotive production. The site became part of Alstom in 2021, after the group acquired Bombardier Transportation.

Alstom Kassel plant sale questions from IG Metall

Employee representatives and IG Metall are calling on Alstom’s management to provide more transparency about the possible transaction. Their questions focus on the scope of any sale. This includes which parts of the business could be included, as well as guarantees for employees.

According to HNA, the works council and IG Metall have stressed that the plant is operating at full capacity. It also has a solid order book. One employee representative said that, after 178 years of locomotive production in Kassel, employees want that work to continue.

The reports about a potential sale come during a tense period for Alstom in Germany. IG Metall accuses the company’s management of continuing staff reduction and reorganization programs. The union says this is happening despite commitments made under the Zukunftstarifvertrag. That agreement was negotiated for the future of several German Alstom plants.

Dispute over production transfers to lower-cost countries

The union says Alstom has not fulfilled its commitments on investment in German facilities. It also accuses the company of preferring to move operations to so-called “best-cost countries.” These are countries with lower production costs. IG Metall says Alstom should instead strengthen existing factories in Germany.

Also, IG Metall argues that this strategy would lead to additional delays and quality problems. Employees at German plants would then have to compensate through extra effort. The union is also demanding the return of funds connected to vacation pay. Employees gave up those funds under the agreement on the future of the plants.

That agreement covered several Alstom sites in Germany. They include Hennigsdorf, Hennigsdorf Drives, Görlitz, Bautzen, Siegen, and Kassel. Employees accepted financial contributions, mainly from vacation pay. In exchange, they received commitments on investment and job security. IG Metall maintains that these commitments have not been met.

Görlitz precedent and defense-sector context

The discussion around Kassel is also being viewed in relation to Görlitz. That is another German Alstom site with a railway tradition. In 2024, Alstom sold the Görlitz plant to defense group KNDS. Reuters reported that railway production there was later replaced by activities connected with the military industry.

In Kassel, the issue is sensitive because defense industry facilities are located near the Alstom plant. HNA noted that both KNDS and Rheinmetall are present in the city. Rheinmetall operates what it describes as one of Europe’s largest tank factories in the area. It has also announced expansion plans through 2029.

Still, there is no confirmation that a buyer from the defense industry is interested in Alstom’s Kassel plant. German press reports have not officially identified the interested company. Alstom refers only to preliminary discussions with no definitive outcome.

Traxx locomotives and recent modernization

The possible sale has raised further questions because Alstom has invested tens of millions of euros in the Kassel site in recent years. German media reports say the company reorganized its production processes to improve efficiency. Business volume was also increasing.

At the end of 2025, service operations were separated from the production plant. Around 100 employees remained at the site. The union and employee representatives now want to know whether a potential transaction would cover the entire facility or only certain operations.

For Alstom, the Kassel discussions are part of a broader reorganization of its industrial footprint in Germany. For employees, the central issue is whether locomotive production can continue in the city. This activity has existed there for almost two centuries.

The Kassel facility is not only a German industrial site. It is also an important production hub for Traxx locomotives, one of Europe’s most widely used families of electric locomotives. Alstom says Traxx locomotives have been certified in 20 countries. The company also says more than 3,000 units have been sold since 2000.

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