German porcelain icon Rosenthal faces factory shutdown
A well-known porcelain manufacturer, Rosenthal, is facing serious financial difficulties. These difficulties are so significant that the company plans to close one of its two factories in Bavaria, its place of origin. If this scenario unfolds, more than 100 company employees, synonymous with German quality, will lose their jobs.
Founded in 1879 by Philipp Rosenthal, the company struggles with rising production costs and declining demand for its products. According to German media, cited by Interia Biznes, the porcelain manufacturer is considering closing one of its two factories, which would entail job reductions.
Currently, the company employs over 600 people, and a decision regarding the future of the plants in Selb and Speichersdorf is expected by the end of January. The factory closure would mean job losses for at least 100 employees.
Rosenthal's press office stated that management is in talks with labor unions to consolidate production in one facility.
In November 2024, Rosenthal recorded a sales decline of around 30 percent. In 2021, the company achieved sales of 77 million euros (approximately 82 million USD), but the profit was only 1.9 million euros (around 2 million USD), whereas the previous year saw a loss of 1.5 million euros (about 1.6 million USD).
Germany in recession: Latest S&P report
The PMI index for the German private sector rose to 47.8 points in December from a nine-month low of 47.2 points in November, still remaining below the 50-point threshold separating growth from decline.
The S&P report also indicates that activity in the service sector slightly increased (index at 51.0) after witnessing a decline for the first time in nine months in the middle of the fourth quarter.
However, the data still points to widespread weakening of demand. Moreover, the influx of new orders showed the sharpest decline since September, and the rate of decrease accelerated in both monitored sectors.
This was particularly severe in the industry, where "incoming orders showed the steepest drop in three months due to customer restraint, strong competition, and lower foreign demand," the report reads.
