Faber-Castell
Stein (ots)
Germany is to become a competence and innovation center for products in the premium segment/Partial relocation of smaller production units to Latin America/Possible loss of around 130 jobs due to planned efficiency measures
At an information event for employees at the Stein, Geroldsgrün and the logistics center at the port of Nuremberg, the board’s plans for the realignment of the German plants were announced. The package of measures is based on the global corporate strategy “ONE Faber-Castell”, introduced in 2022, which is intended to position the family business for the future with growth initiatives and efficiency improvements through synergy effects in the group. The aim is to remain competitive and therefore profitable in Germany by concentrating on innovative products in the high-quality equipment and quality segment.
Focus on high-end products and new technologies
In Germany, Faber-Castell has many years of expertise and excellent manufacturing know-how, especially for particularly high-quality products. The company wants to expand on precisely these strengths and focus on highly qualified manufacturing. At the same time, in the “Writing + Drawing” and “Cosmetics” business areas, smaller production lines and those with low utilization are being relocated from the headquarters in Stein near Nuremberg and from Geroldsgrün in Upper Franconia to Brazil and Peru. The freed up space at the German locations will be used to expand the high-end lines with unique selling points and new products. Technology and innovation leadership should also become the focus of the Germany Competence Center.
Leverage manufacturing network advantages in an intensely competitive environment
“We are convinced that with these measures we are setting the right course for a strong and sustainable production location in Germany,” said CEO Stefan Leitz. The company recently announced that it wanted to accelerate the implementation of its “One Faber-Castell” strategy due to the increasing challenges posed by global competition, US tariffs, consumer restraint and changes in the trading landscape. “We have the advantage of a global manufacturing network as well as a strong global brand presence. We must exploit these synergies even better in the future in order to be able to operate more efficiently in the market, implement innovations faster and more agilely and continue to ensure our profitability.”
In addition to the realignment of production in Germany, the cost structures in the administrative area are to be improved. “We will continue to reduce our fixed costs here too. This will increase the speed of decisions, simplify processes and expand areas of responsibility,” says CEO Stefan Leitz. According to current calculations, around 130 jobs could be lost due to the changes in the production areas ‘Writing + Drawing’, ‘Cosmetics’ and in administration.
Socially acceptable solutions sought
We are currently in constructive discussions with employee representatives in order to find fair solutions for all affected employees. “We are aware of the importance of these changes and will make the process socially acceptable,” explained Leitz. “Dismissals for operational reasons should be avoided as best as possible and measures such as partial retirement/retirement regulations and natural fluctuation should be used. Our goal is to complete the realignment by the end of the 2026/27 financial year[1] to have completed.”
[1] FY closing: March 31, 2027
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Original content by: Faber-Castell, transmitted by news aktuell
