Long-established Frankish business shifts manufacturing overseas, marking over 85 years of operation
In a significant shift, the traditional plastics company Gaudlitz, based in Coburg, Germany, has announced its decision to move a large portion of its production overseas. The primary reason behind this move is the challenging situation in the automotive industry and the need to reduce expenses in order to remain competitive in the global market.
This decision will result in job losses at the Coburg site, with a total of 29 jobs in production and production-related areas being affected by the relocation to the Czech Republic. The company has been active in plastics production since 1937, and Coburg has served as the headquarters for the international Gaudlitz network. However, with the move, Coburg will be transformed into a technical center, focusing on creating new products for the automotive industry and increasingly for the medical sector.
The location in the Czech Republic offers the best conditions for unlocking synergies and reducing costs in production, thanks to its low operating costs, central location in Europe, and potential for skilled workers. The technical center will also drive the automation and industrialization of production processes in international plants in the Czech Republic and China.
In an effort to support the affected employees, the company will offer alternative positions within the company where possible. Additionally, they will provide application assistance and mediation in the external company network. The job cuts are expected to be completed by spring 2026.
The media release announcing these changes was issued by the Gaudlitz company group on Thursday, July 24, 2025. The employees were informed about the closure of the production site in a meeting on the same day. It's worth noting that even the remaining local production in Coburg will be abandoned.
Originally announced in September 2023, Gaudlitz plans to move a large part of its production abroad, with production capacities being concentrated mainly in the Czech Republic and China. The technical center in Coburg will include a smaller production area for sample construction, small series, and innovative new developments.
This move comes as a significant blow to the local community, with job losses and economic challenges expected to follow. However, the company's commitment to supporting affected employees and driving innovation in the technical center provides a glimmer of hope for the future.
The decisive shift of Gaudlitz's significant production to the Czech Republic indicates a strategic reorientation in both the business and finance sectors. This move, driven by the challenging situation in the automotive industry, aims to unlock synergies and reduce costs for the company.
As a result of this overseas expansion, the international Gaudlitz network will focus on automating and industrializing production processes, particularly in the Czech Republic and China. This transformation will likely impact the local employment scene in Coburg, with the potential for new opportunities in the technical center’s R&D efforts for the automotive and medical industries.
