Quake at Oettinger's workplace in Braunschweig leaves multiple workers impacted.
In a significant move, Oettinger, a leading beverage manufacturer, has announced plans to largely shut down its production at the Lower Saxony site in Braunschweig by spring 2026. This decision is part of a comprehensive efficiency program aimed at transforming Oettinger from a traditional brewery into an innovative beverage company.
Underlying Factors
The relocation of Oettinger's production is primarily driven by several key factors. The German beer market has been experiencing a decline in consumption for decades, leading to overcapacity in production. This has resulted in Oettinger's sales falling to levels last seen over twenty years ago, despite the company having a lower production capacity at that time.
Another factor is the rising costs and the need to retire aging equipment. The Braunschweig brewery would have required extensive modernization to remain operational. The decision to close it down is part of Oettinger's strategy to reduce outdated infrastructure and economically unsustainable equipment.
Oettinger also aims to expand its product portfolio beyond beer, including new offerings in the functional drinks segment, to adapt to changing consumer habits and maintain profitability. This strategic transformation is crucial for the company's future success.
Lastly, the move is designed to optimize operational efficiency and reduce costs across the company's operations. While production will be relocated, logistics and materials management activities will remain in Braunschweig.
Impact on Employees and Local Industry
Approximately 150 employees in manufacturing and bottling at the Braunschweig site will be affected by the relocation. The affected employees will be transferred to a transfer company, subject to the approval of the works council.
The closure of the site in Braunschweig will have a significant impact on the local industry. Oettinger's goal, however, is to offer a solid transition phase through the transfer company and to provide temporary re-employment for professional reorientation.
CEO's Perspective
CEO Stefan Blaschak has expressed concerns about the Nahrung-Genuss-Gaststätten (NGG) union's calls for strikes and refusal of overtime through works councils, stating that these actions are damaging to the company. He has also criticized the union's exorbitant wage demands and aggressive negotiating tactics.
Blaschak emphasizes the need for the company to adapt to market conditions, not just when it's almost too late, but already today. He states that the utilization of the facilities at the Braunschweig site has been declining for years, and despite overall declining sales, Oettinger is finally profitable again.
Despite the difficult decision to close the Braunschweig site, Blaschak expresses a desire to offer a solid transition phase through the transfer company. He states that significant parts of the production will be relocated to Oettingen and Mönchengladbach.
[1] [Source 1] [2] [Source 2]
- In an effort to modernize its operations and boost profitability, Oettinger plans to diversify its product offerings, venturing into new business areas such as functional drinks.
- The manufacturing industry will see a ripple effect as a result of Oettinger's decision to close its Braunschweig site, with approximately 150 employees from the affected department of the company likely to seek career opportunities in other sectors like finance or business.
- The strategic transformation underway at Oettinger, including the closure of the Braunschweig site and expansion into new product segments, necessitates a reexamination of employment contracts, labor relations, and wage structures, which has led to a tense relationship between CEO Stefan Blaschak and the NGG union.
