Mann+Hummel Group says its Ludwigsburg plant will no longer be accepting any new production orders.

Existing production activities will be phased out or relocated.

The specific timetable for the closure will be agreed in cooperation with customers and employee representatives. The company will work with negotiation partners to arrange socially responsible solutions for the staff at the Ludwigsburg plant.

Around 400 jobs at the factory are currently set to be affected by the decision.

"This has been [a] most difficult decision – we have been producing in Ludwigsburg since 1954," said Mann+Hummel chairman of the supervisory board, Thomas Fischer.

"However, this was a necessary measure to ensure the company's future. Of course, the company headquarters with the research and development centre will remain here and we will continue to invest in the technology centre. We stand by the Ludwigsburg location."

Mann+Hummel added it "continuously reviews" its production sites to ensure its ability to meet evolving customer needs. During the course of these considerations, it was determined the competitiveness of the Ludwigsburg production facility cannot be maintained.

"As an international company, Mann+Hummel is not only responsible for the Ludwigsburg site," said Mann+Hummel chief supply chain officer and labour director, Hanno Höhn.

"In order to remain competitive in the medium to long term and to safeguard the future of the company with 22,000 employees worldwide, we need to make this adjustment to our production network."

Fuel, oil and air filter systems among other components for automotive original equipment, are produced in Ludwigsburg.

The company will ensure a transition for its customers and suppliers at the affected site, as well as receiving factories.