Harz region braces for 1,000+ job losses as two auto suppliers collapse

Harzgerode/Wernigerode (dpa) – The automotive supplier industry in the Harz region has suffered a double blow in a single day: Both Bohai, the insolvent foundry specialist, and the equally bankrupt Schlote Group are facing the imminent shutdown of their operations, according to insolvency administrators. More than 1,000 direct jobs—particularly at sites in Harzgerode and Wernigerode—are now at risk, with hundreds more potentially affected among businesses indirectly linked to the companies.

Insolvency administrator Olaf Spiekermann confirmed that negotiations had been held with three potential buyers for Bohai. However, no agreement has been reached to date—despite binding commitments of support from the state of Saxony-Anhalt, the city of Harzgerode, and other institutions. Late last week, Bohai's main customer announced it would withdraw essential production orders, currently fulfilled in Harzgerode and Sömmerda in Thuringia, starting this autumn.

Without this work, Spiekermann stated, neither site would remain viable. A final decision is expected from the four creditors' committees by the end of next week. Bohai employs nearly 700 people, but its collapse threatens an additional 650 jobs at regional firms economically tied to the company.

Sites in Thuringia and Brandenburg also affected

The insolvency administrator for the Schlote Group likewise reported that customers had informed the company they would source automotive components from other suppliers in the future. This decision impacts around 330 employees across GAW Wernigerode, Schlote Harzgerode, and Schlote Brandenburg.

Both Bohai and Schlote had received tens of millions in financial support from customers and contractors over the past year to sustain operations while rescue negotiations continued, the administrators said. The Schlote Group's creditors' committee must still approve any further steps. Production at the Brandenburg an der Havel plant has already begun winding down, with full closure expected by autumn.