Alstom is considering the sale of its locomotive plant in Kassel, Germany, one of the oldest railway manufacturing facilities in Europe. However, discussions with potential buyers are still in the early stages, and the company maintains that no decision has been made.
According to the German publication HNA, Alstom has begun discussions with potential buyers regarding the acquisition of the Kassel plant. The facility has approximately 800 employees and manufactures locomotives, including variants of the Traxx platform.
Employees were informed at the end of April, but the identity of the interested company has not been disclosed, citing a confidentiality clause.
The Kassel plant has an industrial tradition spanning nearly 180 years, with ties to the former Henschel factory, one of the historic names in German locomotive manufacturing. The facility became part of Alstom’s portfolio in 2021, following the acquisition of Bombardier Transportation.
Union calls for transparency
Employee representatives and the IG Metall union have called on Alstom management for greater transparency regarding the potential transaction. They are seeking clarification on which parts of the business might be included in a sale and guarantees for employees.
According to HNA, the works council and IG Metall have pointed out that the plant is currently operating at full capacity and has a solid order book. An employee representative stated that, after 178 years of locomotive production in Kassel, employees want this activity to continue.
Reports of a possible sale come amid a tense situation for Alstom in Germany. IG Metall accuses the group’s management of continuing with staff reduction and reorganization programs, despite commitments made under the so-called Zukunftstarifvertrag, an agreement negotiated for the future of several of the group’s German plants.
Accusations regarding the transfer of production to lower-cost countries
The union claims that Alstom has not honored its commitments regarding investments in its German facilities and accuses the company of preferring to transfer operations to so-called “best-cost countries”—countries with lower production costs—rather than strengthening its existing factories in Germany.
IG Metall asserts that this strategy would lead to more delays and quality issues, which employees at the German plants would then have to compensate for through extra effort. The union is also demanding the return of funds representing vacation pay that employees waived as part of the agreement regarding the future of the plants.
The agreement targeted by the union included several Alstom sites in Germany, including Hennigsdorf, Hennigsdorf Drives, Görlitz, Bautzen, Siegen, and Kassel. Employees agreed to financial contributions, primarily from vacation pay, in exchange for commitments regarding investments and job security. IG Metall, however, claims that these commitments have not been fulfilled.
The Görlitz Precedent and the Defense Industry’s Interest
The potential sale of the Kassel plant is also viewed in light of the precedent set by Görlitz, another German Alstom facility with a railway tradition. In 2024, Alstom sold the Görlitz plant to the defense group KNDS, and railway production was subsequently replaced by activities related to the military industry.
In Kassel, the situation is sensitive because defense industry facilities are located near the Alstom plant. HNA notes that both KNDS and Rheinmetall have a presence in the city. Rheinmetall operates what the company describes as one of Europe’s largest tank factories in the area and has announced expansion plans through 2029.
However, there is no confirmation that a buyer from the defense industry is interested in the Alstom plant in Kassel. According to reports in the German press, the interested company has not been officially identified, and Alstom is only referring to preliminary discussions with no definitive outcome.
The plant had recently been modernized
The potential sale also raises questions because Alstom has invested tens of millions of euros in the Kassel plant in recent years. According to German media reports, the company reorganized its production processes to increase efficiency, and business volume was on the rise.
At the end of 2025, the service operations were separated from the production plant, though approximately 100 employees remained on site. The union and employee representatives now want to know whether a potential transaction would involve the entire facility or only certain operations.
For Alstom, the discussions in Kassel are part of a broader reorganization of its industrial footprint in Germany. For employees, however, the stakes are high: maintaining locomotive production in a city with nearly two centuries of tradition in this field.
The Kassel plant is not only a German industrial asset but also a key hub in the production of the Traxx platform, one of the most widespread families of electric locomotives in Europe. Traxx locomotives have been certified in 20 countries, and Alstom reports over 3,000 units sold since 2000.
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