General Motors’ Opel division said today it agreed with labor leaders on the outline of a severance deal for workers at the troubled Bochum plant, which is due to stop making cars at the end of 2014.

Opel said it will keep 700 jobs in Bochum, located in a depressed coal-mining region, by expanding its logistics warehouse. Furthermore, at least 200 out of more than 3,000 staff in Bochum will be offered an opportunity to transfer to other Opel factories.

The plant closure is part of a company strategy to achieve profitability in 2016 after more than a decade of losses for GM in Europe.

In March, employees at the 50-year-old factory voted against a restructuring deal that would have maintained production in Bochum up until 2016 and retained 1,200 staff.