Cost Pressure and Market Changes Drive Production Realignment

Siegwerk to Close Swiss Production Site and Relocate Manufacturing to Turkey

Siegwerk responds to declining market demand and the strong Swiss franc (Source: Siegwerk)

The ink manufacturer Siegwerk, headquartered in Siegburg, Germany, will close its production facility in Bargen, Switzerland. The company has confirmed the decision, with plant manager Rob Hilgers stating that production activities will be transferred to an existing Siegwerk site in Turkey.

Production at the Bargen facility is scheduled to cease in early 2027. A total of 145 employees are directly affected by the closure, with more than 100 positions expected to be eliminated. However, between 35 and 40 employees will remain in the Bern region, where Siegwerk’s technology department will continue to operate.

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According to Siegwerk, the decision is driven by several economic and structural factors, including high production costs in Switzerland, the strength of the Swiss franc and declining demand for UV inks in the European market. The company sees particular growth opportunities in Eastern Europe, the Middle East and Africa, where markets can be served more competitively from its Turkish production site.

The closure also reflects broader changes in market demand. In Switzerland, only a limited number of printing companies remain that produce labels for PET bottles and flexible films. According to an employee quoted by the Bieler Tagblatt, the Bargen site’s customer base now consists almost exclusively of international customers.

A social plan has been agreed for affected employees in Bargen, including severance payments and additional support measures.

The relocation forms part of Siegwerk’s efforts to align its production network with changing market conditions and strengthen its competitiveness in key growth regions.