Beiersdorf to cease cosmetic manufacturing at Baden-Baden site

By Andrew McDougall

- Last updated on GMT

Related tags: Time, Term, Beiersdorf

Germany-based Beiersdorf is planning on selling its production site in Baden-Baden, or possibly closing it in the medium term, affecting 390 employees.

The plan to discontinue manufacturing cosmetic products at its production location in Baden-Baden was announced by the company yesterday.

The Baden-Baden site, which is located in the South of Germany, slightly West of Stuttgart, currently has 390 employees working there.

The move to sell the site follows an analysis of the location which has already been presented to the employee representatives.

The location itself is operated by Produits de Beauté Produktions GmbH, which is a Beiersdorf affiliate.

Conditions have changed significantly

Beiersdorf says the review became necessary because the conditions for manufacturing cosmetic products in Baden-Baden have changed significantly and capacity utilization has declined continually in recent years.

The analysis revealed that there is no possibility of the highly specialized production being competitive within Beiersdorf’s global production network in the long term.

The stated goal from the company is to provide a future for the location outside the Beiersdorf Group by selling it.

Intention to sell

Beiersdorf has made it clear that this is the intention, however if no investor is found in the next six months, both production and logistics operations will be closed in the medium term.

The skin care company will hold talks with the employee representatives with the aim of finding solutions for the 390 affected members of staff in a bid to offset economic disadvantages and offer career prospects.

Beiersdorf is confident it can resolve any issues with the affected employees and said in a company statement it ‘has demonstrated its ability in the past to find fair solutions such as offers of continued employment at other locations within the Beiersdorf Group.’

Related topics: Business & Financial, Colour Cosmetics

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