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Site Consolidation at Würth Elektronik
October 9, 2024 | Wurth ElektronikEstimated reading time: 2 minutes
Würth Elektronik Circuit Board Technology, printed circuit board manufacturer headquartered in Niedernhall, Baden-Württemberg, announced at the company meeting the planned closure of its PCB production in Schopfheim. Future orders will be handled at other Würth Elektronik locations in Germany. The primary reason is the current severe crisis in the European PCB industry, marked by a dramatic drop in incoming orders. Over 300 employees in Schopfheim are affected.
The economic crisis has reached historic proportions, particularly in the industrial electronics sector, which is under significant cost pressure. For many years, the number of PCB manufacturers in Europe has been sharply declining. Production volume in Europe has fallen below 2% of global production. Orders are increasingly shifting to China and other low-wage countries. The situation is exacerbated by massive increases in energy and personnel costs, as well as the uncertain geopolitical and economic situation worldwide. Many customers are currently unable to pay the higher prices for the delivery reliability that German plants offer compared to Asian productions. The demand from other industries that rely heavily on regional value creation is too low to permanently utilize the capacities of all Würth Elektronik Circuit Board Technology’s PCB productions. These industries include, for example, medical technology and aerospace.
Würth Elektronik is one of the largest PCB manufacturers in Europe. “Unfortunately, we currently see no alternative to ceasing production in Schopfheim,” says Daniel Klein, Managing Director of Würth Elektronik Circuit Board Technology. “This measure is necessary to minimize losses and ensure the company’s long-term competitiveness. The cost pressure is highest at our series and standard PCB plant in Schopfheim.”
What’s next?
The closure of production in Schopfheim affects over 300 jobs. “The management and employee representatives began discussions on October 4, 2024, about a reconciliation of interests and a social plan,” says Würth Elektronik Managing Director Andreas Gimmer, “to cushion the necessary decision with socially acceptable solutions and to support the colleagues. Further meetings have been scheduled. There are no concrete results yet.”
At the production sites in Niedernhall and Rot am See, the focus will be on industries and applications whose more complex and individual PCBs are strategically manufactured in Europe. Comprehensive services around the PCB will be maintained to accompany customers from the product idea to the finished product.
The consolidation of production sites enables stable capacity utilization of the other plants in Germany and aligns Würth Elektronik Circuit Board Technology for a financially healthy future. “With our remaining 700 employees, Würth Elektronik remains the technology expert for the future,” says Würth Elektronik Circuit Board Technology Managing Director Thomas Beck.
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