Companies

Birkenstock invests 110 million euros in new shoe factory

Sep 15, 2022 Germany

The German brand revealed that the investment of around 110 million euros in the new site in Pasewalk, Northeast Germany, is "by far" the largest individual one in the company's history

In a groundbreaking ceremony that counted with the presence of Reinhard Meyer, Minister for Economy, Infrastructure, Tourism and Labour, Birkenstock, which is partly owned by LVMH's investment vehicle L Catterton, kicked off the third construction phase of its new shoe factory, whose works began last Spring.

Last year, the brand announced that it intended to invest about 100 million euros, but the investment cost is thought to have soared. "When we started planning our new plant just under a year and a half ago, the world was a different place. I am therefore all the more grateful to our teams that the project is still on schedule despite inflation, turmoil on the raw materials markets and supply bottlenecks in the construction sector", commented Mark Jensen, Chief Technical Operations Officer (CTOO) of the Birkenstock group.

Production is expected to start in the third quarter of 2023, creating around 1 000 new jobs in the medium term, which would make Birkenstock one of the largest private employers in the region. Mark Jensen added that 50 employment contracts are already signed, sealed and delivered, and that people in the region "are showing a huge interest" when production will only start in a year from now. "This is a sign that we have made the right location decision and proof of the strength of our organization to implement activities even in turbulent times", he concluded.

"The fact that Birkenstock is moving to our region sends an important message to everyone here – that sustainable jobs are being created that add value to our region. The company's investment shows that the efforts promoting Western Pomerania as an industrial hub are paying off", stated Reinhard Meyer, Minister for Economy, Infrastructure, Tourism and Labour.

Image Credits: birkenstock-group.com

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