Offshore manufacturing becomes a strategic decision for established firms

Offshore manufacturing becomes a strategic decision for established firms

In a significant move, Leuchten-Technik Tettnang (LTT) has announced that production of lighting systems at their Tettnang-Bürgermoos site will cease from November 30, 2025. This decision, part of a broader strategic realignment, aims to secure and maintain the remaining jobs at the Tettnang site in the long term.

The focus of the corporate group, which includes LTT, Fluolite Licht & Leuchten, Reiss Kunststofftechnik, and entities active in rental and leasing, is now on optimizing resource utilization and securing the long-term market position of the lighting technology division.

Sales and distribution of lighting systems by Fluolite Licht & Leuchten will continue, with both construction and product management remaining at the Tettnang site. However, around 50 jobs in the lighting technology sector of the Tettnang company are affected by this restructuring.

The decision to halt production is due to a combination of factors, including persistently low utilization of production capacities, consistently high production costs, and significantly increased cost pressure from Asian competitors. Another crucial factor is the continued weakness in market development, with the current Ifo index for lighting technology in July 2025 being -29.8.

To sustainably strengthen competitiveness and innovation, the company plans to concentrate technical core competencies and plastics manufacturing at the remaining Tettnang site. Selected production processes and corresponding capacities will be transferred to Romania within strategic partnerships. CiS electronic GmbH is one such partner, planning to shift production processes and capacities to Romania within a strategic partnership framework.

This strategic realignment also includes a targeted adjustment of the product portfolio. For over 40 years, technical lights and lighting components have been designed and manufactured at the Bürgermoos plant. The company will now focus on areas where it can achieve greater success and profitability.

Despite intensive efforts to improve efficiency and reduce costs, the lighting technology business segment has not been able to achieve sustainable profitability over an extended period and has been operating at a loss. The company assures that available resources will be used to ensure and further develop the best possible prospects for employees on site during the strategic realignment.

The focus now is on the future, with the company aiming to secure jobs and maintain a strong presence in the lighting technology industry. The restructuring measures are a necessary step towards achieving these goals.