German industrial conglomerate Siemens is closing its plant in Hengelo in Overijssel with the loss of 600 jobs, local broadcaster RTV Oost reported on Thursday.

The company makes compressors and gas turbines at the factory, which is a major local employer. The closure is part of a worldwide reorganisation which is costing 6,900 jobs, mostly in the company’s energy and gas operations.

Siemens has a workforce of some 3,000 in the Netherlands.

The company’s Hengelo personnel are being briefed about the closure on Friday morning after the news leaked out via a company email, RTV Oost said.

The CNV union says the job losses are a heavy blow for the region. In addition, many of the workers are older and will find it hard to get new jobs, spokesman Gerard van der Molen said.