Germany is losing its big players one after the other: after the chemical industry giant BASF, the household appliance manufacturer Miele has also announced that it will start downsizing and move part of its production abroad.
According to the head of the German stock exchange, the country has become a junk shop, from which investors are fleeing.
Germany's economy is in a deep crisis, the problems of the business location are aggravated by factors such as strict bureaucracy, lack of skilled labor, the energy crisis, high taxes and personnel costs - that is why more and more large companies are starting to downsize and move their production abroad.
Recently, the chemical industry giant BASF announced its withdrawal, and over the weekend, the home appliance manufacturer Miele announced that it would cut 1,300 jobs in Gütersloh, Germany, 700 of which would be relocated to Poland.
Our reputation in the world has never been so bad, we have become a junk shop!
The Polish market has become more attractive
According to information from the Berliner Zeitung, according to the plans of the household appliance manufacturer, every ninth of the currently nearly 12,000 employees in Germany will be sent to Miele's headquarters, because the washing machine manufacturing business there will be downgraded and production will continue in the Polish factory in Ksawerów.
The company justifies the decision by saying that their sales fell by nine percent last year, the business is struggling, and therefore they are forced to reduce the high energy and wage costs in the mother country.
At the same time, in response to the concerns of the workers, they stated that there is no question of a complete withdrawal, they are not turning their backs, because eight of the 15 factories in Germany are still operating.
The money is needed for a Chinese megafactory
Recently, it emerged that one of the largest German companies, BASF, may also move to China in the long term, and the first steps of this may be to start closing down the European base.
The Tagesschau reported:
at the world's most important chemical company, sales in Germany collapsed last year, while foreign subsidiaries made profits everywhere without exception.
For this reason, the group decided to make serious cuts: eleven production plants in the Ludwigshafen center will be closed, including a fairly new plant called TDI, which produces foams.
This means a loss of around one billion euros for the company, but the money is needed in South China, where ten billion euros are being invested in the construction of a new mega-factory. BASF is building a plant producing chemical raw materials in Zhanjiang, an island off the coast, expected to be completed by 2030.
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