German industry sounds the alarm: One in three companies is considering moving to another country

12PUNTO FOREIGN NEWS

Industrial production in Germany has begun to sound the alarm.

According to a report in the German newspaper Bild, an increasing number of industrialists are preparing to move their operations abroad.

INDUSTRY LEADERS HAVE BEGUN TO LEAVE THE COUNTRY

According to the report, home appliance manufacturer Miele plans to lay off 2,000 people and continue production in Poland.

Previously, the heating equipment manufacturer Viessmann laid off 3,000 people in Germany and established a production facility in Poland.

On the other hand, automotive giant Volkswagen decided to build its battery factory for electric vehicles in the US rather than in Germany. Meanwhile, the chemical company BASF announced plans to invest 10 billion Euros in its petrochemical plant in China while laying off some of its employees in Germany. 

WHY ARE THEY LEAVING?

Siegfried Russwurm, President of the Federation of German Industries (BDI), told Bild that an increasing number of companies are 'at the end of their patience with Germany.'

According to Russwurm, this situation stems from two reasons.

On one hand, the growth of the German economy is slowing down, while on the other, high inflation, particularly in the energy sector, is driving producers away from Germany. In his statement, Russwurm also noted that new production lines are no longer being built in Germany.

Finally, Russwurm said the following in his interview:

“Companies say that long-term planning is becoming increasingly difficult. Under these conditions, they have major doubts about continuing to invest in Germany. Conditions are better elsewhere. And they are going abroad.”

News Source: 12punto