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Siegwerk closes Swiss site: production moves to Turkey
Siegwerk is relocating its production from Bargen, Switzerland, to Tuzla, Turkey. Over 100 employees are losing their jobs due to declining demand for UV printing inks and high production costs in Europe.
The paint and coatings manufacturer Siegwerk, headquartered in Siegburg, Germany, is closing its only Swiss production site in Bargen. The decision to relocate manufacturing to Tuzla, Turkey, has serious consequences for the workforce: 145 employees are directly impacted, with over 100 people receiving redundancy notices. Only 35 to 40 staff members will remain in the Bern region, where the technology department will be based.
The closure of the site is happening earlier than anticipated, with production in Bargen set to cease in early 2027. According to Siegwerk, the main reasons for this move are the declining demand for UV printing inks in Europe, strong growth in regions such as Eastern Europe, the Middle East, and Africa, and high production costs in Switzerland. The strong Swiss franc exacerbates the situation further.
Redundancy plan and incentives for affected staff
A comprehensive redundancy plan has been developed for affected employees, offering above-average compensation. Around 70 % of the workforce will receive at least half a year’s salary as severance pay. Additionally, a bonus system has been introduced: employees who stay until their last working day will receive an extra half-month’s salary per remaining month. This could result in up to nine months’ pay for some staff members.
“The challenging situation in Europe’s printing ink industry is not new. Large-scale printing facilities for labels or films are barely found in Switzerland anymore; nearly all customers are based abroad,” commented an employee to the Bieler Tagblatt.
Strategic relocation of production to Tuzla
Siegwerk sees great potential in growth regions like Eastern Europe, the Middle East, and Africa. The Tuzla site in Turkey allows the company to serve customers in these markets more efficiently and cost-effectively. The future of the Bargen site remains unclear. Siegwerk, which employs over 5,400 staff globally across 13 countries, will continue to focus on expanding its international locations. Bargen was previously the company’s only production site in Switzerland.
