One of the largest printed circuit board (pcb) manufacturers in Europe has announced its planned closure. Würth Elektronik Circuit Board Technology will shutter it pcb production facility in Schopfheim, Germany, affecting more than 300 employees.
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.
The economic crisis has reached historic proportions, particularly in the industrial electronics sector, which is under significant cost pressure, according to a media statement from Wurth Elektronik. 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, said the Wurth media notice.
Customers unable to pay higher prices for delivery reliability
“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,” it read.
“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 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 Thomas Beck, managing director at Würth Elektronik Circuit Board Technology.
