Liebherr Plans Partial Relocation of Operations Abroad, Impacting 350 Employees

The Liebherr Group has announced intentions to relocate some of its operations from its facility in Bad Schussenried, Germany, to Plovdiv, Bulgaria. This move is expected to affect approximately 350 employees at the German site. In a recent statement, the company cited increasing cost pressures as a driving factor behind this decision.

Established in 1949 in Kirchdorf an der Iller, Baden-Württemberg, and currently headquartered in Bulle, Switzerland, Liebherr operates in a range of industries, including machinery, vehicle manufacturing, and household appliances. The company employs over 51,000 people and reported revenues of approximately EUR12.6 billion.

The decision to relocate part of the production, development, and administrative functions comes amid rising operational costs in Germany. Competitors in the construction machinery sector have already shifted their manufacturing operations to lower-cost locations abroad. For instance, ZF Friedrichshafen has opted to invest in facilities in the Czech Republic instead of continuing to operate in Germany.

According to Liebherr, the relocation will occur gradually and is expected to be completed by 2028. The company plans to manage the transition in a socially responsible manner, engaging in discussions with the employee representatives to ensure as smooth a process as possible for those affected.

The Liebherr-Mischtechnik division, which specializes in the production of robust concrete mixers, innovative mixing plants, and high-performance concrete pumps, intends to refocus its operations in Bad Schussenried. The company will shift its emphasis toward concrete pumps and measurement technology, while the production of mixers and mixing plants will be centralized in Bulgaria.

Liebherr's facility in Plovdiv is already involved in manufacturing concrete mixers and has been supplying components to the Bad Schussenried site. With the new strategy, Liebherr aims to consolidate its operational capabilities in Bulgaria, where labor and production costs are comparatively lower.

Challenges in the construction sector have further intensified the need for companies like Liebherr to adapt their business models. The ongoing construction crisis has forced many firms to reevaluate their operational strategies in light of escalating costs and competitive pressures.

In recent years, Liebherr has faced similar challenges at various locations in Germany. For example, the Biberach site saw around 1,000 employees placed on short-time work due to economic difficulties, while the Ochsenhausen facility also resorted to short-time work measures last November.

As the company moves forward with its restructuring plans, it underscores the broader trend within the manufacturing sector, where firms are increasingly looking to optimize costs through strategic relocations. The impact on employees and the community in Bad Schussenried remains a critical concern as the company navigates these changes.