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A business consultancy, based in London, England, John Sacks' JSA Consultancy Services provides expert, in-depth, information advice and guidance as to how to exploit successfully the office furniture and interiors markets in Europe, North America, Australasia and Japan.

König + Neurath AG closing a factory

Thursday 24 October 2013

König + Neurath, a leading German office furniture manufacturer is planning to close its factory in Weissensee/Thuringia which currently employs 130 people, by June 2014 and move production to its Karben headquarters, where it has 90,000 sq m of production area and currently employs 870 people. Employee representatives and employees have been informed of plans to close the Weissensee/Thuringia production location.
In making this move, the long-established company is positioning itself for the future in a market environment that has been stagnant for quite some time, and in which competition and the pressure on margins have been increasing incessantly. The company expects the market to remain stagnant in 2014 and 2015 as well, and König + Neurath is reacting to this development by consolidating its production at a single location.
“In recent years we have done everything we can to safeguard our employees' jobs, and that makes this move particularly difficult for us. Due to that fact that we must maintain the competitiveness of our production and our market orientation, however, there is no way for us to avoid this step if our company is to remain successful over the long term,” says Egon König, Chairman of the Supervisory Board and owner of König + Neurath, adding that: “This measure will solidify König + Neurath's position for the long term.”
Carl-Christoph Held, Chairman of the Board of Management of König + Neurath, also spoke about the changes announced today: “K+N is a major manufacturer of office furniture in Europe. Our company has enjoyed successful development in a dynamic market environment, yet in today's market conditions, a clear and focused company structure is essential to survival. Our close collaboration with specialist retailers, modern production technologies, a highly trained and motivated workforce and our large and innovative product range provide us with an excellent foundation for expanding our market share in Germany while simultaneously continuing to increase our exports. These are our objectives for the future.”

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