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Traditional company Pepperl+Fuchs shocks Mannheim by stopping production!
Pepperl+Fuchs in Mannheim is planning to close production and relocate abroad by mid-2027, affecting 90 employees.
Traditional company Pepperl+Fuchs shocks Mannheim by stopping production!
Pepperl+Fuchs, a traditional automation and sensor specialist, is currently a topic of conversation in Mannheim. After more than 80 years of presence at the site, the company plans to stop production there by mid-2027 and relocate it abroad. The IG Metall union announced the news on August 28, 2025, which was met with shock, anger and incomprehension among employees.
“This is a hard blow for our city and the numerous employees,” says Alfred Storch, chairman of the Pepperl+Fuchs works council. Of the currently around 1,200 employees at the Mannheim location, an estimated 90 are directly affected by the closure. The company itself says 80 employees are affected, which only increases the confusion among employees. While IG Metall calls for a transparent discussion about possible alternatives, a proposed alternative concept to maintain production was rejected by employers. A dialogue between management and employees seems more necessary than ever.
Background to the closure plans
The economic environment is anything but rosy, and many companies in Germany are concerned about the future. According to deutsche-wirtschafts-nachrichten.de, 45% of industrial companies have planned to relocate parts of their production abroad in 2024, which is considered an alarming record. High energy prices, bureaucratic hurdles and difficult location conditions contribute to creeping deindustrialization. Companies such as BASF, Volkswagen and Siemens have already reduced their investments in Germany, which could have dangerous consequences for the location.
This is a worrying development for the Mannheim region. Daniel Warkocz from IG Metall in Mannheim expressed concerns that the loss of jobs and know-how could lead to the desolation of entire parts of the city. It's not just jobs that are at risk; Social cohesion could also be at risk. The prevailing concern is not just about Pepperl+Fuchs employees, but affects many companies in the area.
A survey of companies shows that 29% are even thinking about moving jobs abroad. This trend could turn Germany into an importing country, which would result in rising prices and economic instability. The loss of technological leadership is looming and there are fears that more and more well-paid jobs will be exchanged for precarious service jobs.
Prospects for the industry
The current job security for production at Pepperl+Fuchs expires at the end of 2026, and the company does not plan to extend it. The development, described by many as “creeping deindustrialization”, is not only putting the traditional company in distress, but is also having an impact on the entire Mannheim region.
Those responsible are called upon: In order to stop the economic decline, measures are now needed that strengthen Germany as a business location. The new government must act urgently and improve the business environment. Otherwise, things could become increasingly tight not only for Pepperl+Fuchs, but for many other companies.
An answer to the current development is still pending, but one thing is clear: the concern for the economic future in the region and the jobs associated with it is real. The dialogue between companies and employees must now be actively promoted in order to find a solution and strengthen the local industrial sector.