Europe loses another PCB factory

The company says that the primary reason behind the closure is the current – severe – crisis in the European PCB industry, marked by a dramatic drop in incoming orders. Over 300 employees in Schopfheim are affected by the company's decision to close up shop. Following the closure, future orders will be handled at other Würth Elektronik locations in Germany. 

As previously reported by Evertiq, European PCB manufacturers have over the last couple of decades been outcompeted and outpaced by Asian PCB manufacturers. In 2000, Europe's domestic PCB manufacturing accounted for 16% of the global total; by 2022, this figure had dropped to 2.3%. Back in 2000, Europe had 555 PCB manufacturers, in 2015 this number had been reduced to 247 – in 2021 it had dropped to 171. In August earlier this year, Estonian PCB manufacturer Brandner PCB Oü also decided to close its operations by the end of November due to "the unfavourable business environment for the industry".  

Würth Elektronik CBT states in a press release that the "economic crisis has reached historic proportions, particularly in the industrial electronics sector, which is under significant cost pressure." The company points to the above-mentioned development – with Europe's declining production volume and that orders are increasingly shifting to China and other low-wage countries.

The issue is aggravated by increases in energy and personnel costs, as well as unpredictable geopolitical and economic environments throughout the world. The company continues to say that 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 industries that depend on local value creation, like medical technology and aerospace, is too low to fully use all of Würth Elektronik Circuit Board Technology’s PCB production capacity.

“Unfortunately, we currently see no alternative to ceasing production in Schopfheim,” says Daniel Klein, Managing Director of Würth Elektronik Circuit Board Technology, in the press release. “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.”

As stated earlier, the closure of the production in Schopfheim will affect over 300 jobs. Negotiations have already started, but are still ongoing.

“The management and employee representatives began discussions on October 4, 2024, about a reconciliation of interests and a social plan 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,” says Würth Elektronik Managing Director Andreas Gimmer.

At the Niedernhall and Rot am See production sites, the focus will be on industries and applications that require complex, individual PCBs – strategically made in Europe. 

The company argues that the consolidation of its production sites will enable stable capacity utilisation at the other plants in Germany and align  Würth Elektronik CBT for a financially healthy future.