The renowned German porcelain manufacturer, Rosenthal, is facing a severe financial crisis that may lead to bankruptcy. The company, which has been synonymous with high-quality porcelain for 145 years, is planning to close one of its factories and implement massive layoffs. The crisis is attributed to a drastic decline in sales and soaring operation costs.
According to recent reports, Rosenthal has already reduced its workforce by around 100 employees in spring 2024, leaving the company with 600 employees. However, further drastic measures are necessary to avoid bankruptcy. The management is currently in talks with trade unions to discuss radical layoffs, which are expected to be carried out by the end of January 2025. The company operates two factories in Bavaria, one in Selb and another in the Bayreuth district. While it is unclear which factory will be closed, the restructuring plans involve continuing production on a smaller scale in one of the facilities.
This is not the first time Rosenthal has faced a major crisis. In 2009, the company filed for bankruptcy due to the collapse of its parent company, Waterford Wedgwood. The Italian group Arcturus, which also owns the Sambonet cutlery brand, took over Rosenthal, and the situation stabilized. However, the recent years have brought new challenges. The surge in energy costs caused by the Ukrainian war and high labor costs in Germany have significantly burdened the company’s budget.
If Rosenthal reaches an agreement on restructuring, it plans to introduce modern technologies in one of its facilities to reduce production costs. However, if an agreement is not reached, the company may face bankruptcy again, close both factories, or relocate production abroad. In such a scenario, only administrative, sales, and design departments would remain in Selb.
Rosenthal’s crisis is part of a broader trend in the porcelain industry. Many European manufacturers, including well-known Polish factories such as „Karolina” in Jaworzyna Śląska and „Krzysztof” in Wałbrzych, have ceased operations. The main reasons for this trend are the competition from cheap Asian products and the decreasing interest of younger customers in high-quality porcelain. For many young people, porcelain has lost its prestige, further weakening the market for traditional manufacturers.
According to a report by the European Ceramics Industry Association, the European ceramics industry has been experiencing a decline in recent years, with a significant drop in production and employment rates. The report highlights the need for innovation and adaptation to changing market trends to remain competitive.
In Poland, the porcelain industry has a long history and has been an important sector of the economy. However, in recent years, many Polish factories have struggled to compete with cheaper imports from Asia. According to data from the Polish Ministry of Development, the country’s ceramics production has decreased by 15% over the past five years, with a significant decline in employment rates.
The crisis in the porcelain industry is not only a problem for manufacturers but also has an impact on local communities and economies. In Selb, for example, Rosenthal is one of the largest employers, and the company’s potential bankruptcy would have significant consequences for the local economy.
In conclusion, Rosenthal’s crisis is a symptom of a broader trend in the porcelain industry, driven by changing market trends, increasing competition, and high operation costs. To remain competitive, manufacturers must innovate and adapt to changing consumer preferences. The fate of Rosenthal and other manufacturers in the industry hangs in the balance, and their survival depends on their ability to navigate these challenges.