Economic Decline in Penig: Factories Close While Death Industry Expands

Fri 16th May, 2025

Penig, a small town in Saxony with a population of approximately 8,100, faces significant economic challenges as it prepares to close its last remaining paper manufacturing facility, marking the end of 488 years of production in the region. The Felix Schoeller company announced that its Penig plant will cease operations by June 30th, leaving 119 employees uncertain about their futures.

One of the factory workers expressed confusion over the closure, stating that there had always been a sufficient number of orders to sustain operations. The local mayor, André Wolf, has criticized the decision, suggesting that the company is prioritizing its main facility in Osnabrück at the expense of Penig's long-standing industrial heritage.

Furthermore, the town's economic situation is compounded by the announcement that the Limex building materials factory will also shut down due to insolvency. This facility, which produced construction components, will not be relocated, leaving additional job losses in its wake.

While the closures paint a grim picture of Penig's economic landscape, there is a contrasting development: plans are underway to establish a crematorium in the northern part of the town. The necessary permits for this project have already been granted, although it remains unclear how many jobs this new venture will create amidst the ongoing economic downturn.

The dual narrative of factory closures and the establishment of a death care facility highlights the stark contrasts facing Penig. As traditional manufacturing jobs disappear, the community grapples with the implications of these changes while seeking new opportunities for economic revitalization.


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