Van Hool will focus the production of coaches and buses on its plant in North Macedonia under a recovery plan that is set to see a reduction in the business’s workforce of around 1,100 by 2027.
The Belgian manufacturer says that “strategic realignment” is necessary for a sustainable future for the company. Those efforts will see coach and bus production centred on the existing plant near Skopje, and the Koningshooikt facility in Belgium focus on trailers.
That segmentation will also see Van Hool become “more selective” in accepting new orders for buses, although a representative has confirmed to routeone that the coach range does not fall within any narrowing of production scope.
When announcing the planned changes on 11 March, the builder noted that the shift will see it “strategically refocus activities towards market segments where customers consciously choose the high quality of Van Hool products.”
It is understood that several orders for the new T range of coaches have been placed by UK operators, with first deliveries expected soon. Coach and bus research and development, aftersales, prototype manufacture and a “knowledge centre” will remain in Koningshooikt.
Under the Van Hool recovery plan, 830 jobs will be lost this year via redundancy, retirement and natural attrition. Post-2027, it is anticipated that the manufacturer will employ 1,400 staff directly. Consultation on the overhaul has begun with staff representatives.
Need for the recovery plan has come about because of what Van Hool says are challenging financial conditions. Those have been caused by the COVID-19 pandemic, high energy costs, inflation, and supply chain difficulties.
“Van Hool’s management is determined to address these challenges and, through implementation of the Van Hool recovery plan, get the company back on track,” a statement reads.
News of the overhaul comes around two months after the naming of Marc Zwaaneveld as Co-Chief Executive Officer, where he works alongside established Co-CEO Filip Van Hool. Mr Zwaaneveld has significant experience in company recovery.
When he was appointed in January, Van Hool noted that Mr Zwaaneveld’s arrival was to accelerate and intensify the business’s recovery from pandemic impacts and other headwinds. Mr Van Hool was thus freed to focus more on day-to-day activities.
Speaking about the difficult consequences of the recovery work, Mr Zwaaneveld says: “We understand the impact this plan will have on employees and their families, and it is hard for us to take this step.
“However, given the highly pressing situation the company finds itself in, it is truly necessary to take these measures to secure a sustainable future for Van Hool. With this recovery plan, Van Hool remains a meaningful employer in Flanders.”
The North Macedonia factory has long built Van Hool’s EX coach range and models for the North American market. Despite the business’s future position of taking bus orders on a more selective basis, in 2022 it unveiled the A model that offers battery-electric, hydrogen fuel cell-electric and trolleybus power sources at lengths of 12-24m.
