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Playmobil Ends Production in Germany

High German labor and energy costs prompted the company to shift manufacturing to Malta and the Czech Republic.

Overview

  • The company placed the remaining Dietenhofen staff on paid leave Tuesday, suspended production and confirmed the plant will close on June 30.
  • Playmobil will concentrate toy manufacturing in its plants in Malta and the Czech Republic while keeping product development, marketing, logistics and administration in Germany.
  • Employee representatives agreed a social plan for about 350 affected workers that includes a transfergesellschaft, which temporarily moves staff to a transition company, and negotiated severance payments.
  • The works council and the IGBCE union condemned the timing and handling of the move, with the works council chair calling the announcement "a catastrophe" and saying staff felt disrespected.
  • The decision responds to years of falling sales and rising costs in Germany and could signal broader pressure on domestic manufacturing as companies relocate production to lower-cost EU sites.