Automotive component manufacturer Gestamp is closing its manufacturing unit in Luleå, Sweden, affecting 195 employees, according to reports from SVT Nyheter. The company, which produces steel components for the automotive industry, has confirmed that negotiations with affected trade unions have begun.
Mats Hedberg, from the communications agency Hallvarsson & Halvarsson, stated that the closure is due to a weak European automotive market. "The vehicle market in Europe is too weak, therefore the operation is being shut down," Hedberg said.
The vehicle market in Europe is too weak, therefore the operation is being shut down
The closure will be carried out gradually and is scheduled to be completed by 2027 at the latest. According to the company, this phased approach will contribute to an easier adjustment for the affected employees. While the manufacturing operations will be discontinued, the research activities at the Luleå facility will remain operational.
The company initiated negotiations with trade unions on Wednesday, March 5, 2026, as part of the closure process. Gestamp hardtech in Luleå specializes in manufacturing steel components for the automotive industry.