MUNICH "The decision by many companies to bring their foreign production operations back to Germany shows that Germany, and especially Bavaria, are once again growing more attractive as top industrial locations", underlined Bavaria’s Minister of Economic Affairs, Emilia Müller, referring to a series of recent backsourcing decisions. The Kathrein Group, for example, has moved its Korea production back to Grassau on Lake Chiemsee and Steiff, the Swabian manufacturer of plush animals, has brought its China production back to Giengen an der Brenz. Other smaller companies like "Ghost Bikes" from Waldsassen in the North of the Upper Palatinate have also moved back. The bicycle manufacturer wanted to wind up its branch office in the Czech Republic and return to Bavaria.
Müller: "According to estimates made by the Fraunhofer Institute for Systems and Innovation Research in Karlsruhe, in the last eight years over 3,500 firms from the metal and chemicals sectors alone have brought back their production operations from abroad." Altogether one in every four to six companies, which had relocated their production facilities abroad, was returning to Germany within a few years."I am delighted that the companies are adopting a more realistic approach to their decisions about sites. Today, all the relevant location factors leading up to a foreign engagement are being analyzed more thoroughly", Müller said. The companies had recognized that foreign production operations often give rise to greater problems with regard to quality, higher logistics costs or more far-reaching loss of flexibility than originally anticipated. "While those Bavarian firms seeking proximity to new markets will certainly continue to produce abroad in the future as well, we will make every effort to keep Bavaria as competitive as possible in a global comparison. I am therefore expecting more companies to bring their foreign production operations back to Bavaria", the Economic Minister commented.
Source: Invest in Bavaria
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