Germany's construction supplier VBH Deutschland is undergoing liquidation amidst the country's economic predicament
VBH Germany GmbH Undergoes Structured Wind-Down Amid International Growth Focus
In a significant move, the German subsidiary of the VBH Group, a leading hardware supplier specialising in products and system solutions for the manufacture and installation of windows and doors, is being wound down as part of a strategic plan to strengthen the group's international business. This decision, announced in August 2025, signifies the VBH Group's intent to withdraw from direct German operations while focusing on expanding or reinforcing markets abroad.
The VBH Group, with its headquarters in Germany, employs around 1,600 people worldwide, with more than 450 based in Germany. The company has a footprint in over 20 countries, operating its own subsidiaries. However, the German subsidiary, based in Korntal-Münchingen, district of Ludwigsburg, has been affected by the weak construction industry in Germany.
Despite the challenges faced by the German subsidiary, the VBH Group achieved a turnover of around 500 million euros last year, indicative of its successful operations in its international regions. The group has been actively engaged in talks with potential investors for a takeover of the entire company or parts of it, but these discussions have not yielded fruitful results so far.
The wind-down of VBH Germany GmbH is expected to result in job losses for around 450 employees. However, the process is being managed in a structured manner, implying a phased cessation of local activities that could potentially include employee redeployments, severance arrangements, or transfers to other VBH Group entities internationally.
It's important to note that the VBH Group operates in industries other than the German construction industry. The group's international regions have not been affected by the weak construction industry in Germany, suggesting that the decision to wind down the German subsidiary is a strategic one rather than a response to market conditions.
In conclusion, the winding down of VBH Germany GmbH marks a strategic refocus by the VBH Group to concentrate on international growth, causing a significant operational scale-back in Germany, likely impacting local employees and operations through a managed reduction process. The group continues its search for a suitable investor to take over the German subsidiary or its parts, while maintaining its successful operations and growth in its international regions.
[1] Business Insider, "VBH Germany GmbH to be wound down as part of international growth focus", 2025. [2] Reuters, "VBH Group announces winding down of German subsidiary", 2025.
- The VBH Group, with operations in various industries, has decided to withdraw from direct finance and business activities in Germany, in a strategic move to focus on international growth.
- In an effort to reinforce markets abroad, the VBH Group is streamlining operations in a structured wind-down of its German subsidiary, while continuing to pursue potential investors for a takeover, indicating that international business remains an integral part of their overall business strategy.
