International
© MEIKO
02.10.2024

MEIKO iron foundry in Ettenheim, Baden, to be closed

Offenburg-based Meiko Maschinenbau GmbH & Co. KG, a global manufacturer of professional warewashing solutions, food waste disposal systems, cleaning and disinfection technology for the commercial sector, will close the Meiko Eisengießerei GmbH iron foundry in Ettenheim, which also belongs to the Meiko Group, on 31 March 2025. The reasons for this can be found in the macroeconomic environment. For years, the foundry industry has been affected by the continuing high costs of energy and raw materials and by the current market distortions.

According to the company, the economic conditions are particularly affecting Meiko Eisengiesserei GmbH: the order books are falling, competitors from abroad are pushing into the established niches of foundries in Germany with low-cost offers.

In addition, the prevailing shortage of skilled workers is also having an impact. Very high investments in modern technologies would be required to position the foundry for future success and to meet the high environmental requirements. However, after an extremely intensive review by the company, this is not a commercially viable solution because the above-mentioned circumstances are a permanent obstacle.

Dr Thomas Peukert, CEO of the Meiko Group, comments: ‘The decision to close the iron foundry is very difficult for us, but it is unavoidable in view of the permanently negative framework conditions. As the Meiko Group, we want to continue to grow and that means we have to align our product portfolio with the markets. We see no market and no growth for the cast products in the future either’.

The Offenburg-based company is foundation- and value-driven and recognises its responsibility towards its employees. ‘We will do everything we can to make this as socially acceptable as possible for our 55 employees, because at Meiko we put people first – they have just lost their professional home,’ says Beate Friedrich, who is responsible for the Meiko Group's HR division.

When asked how existing orders will be handled, Dr Thomas Peukert answers: ‘We see it as our duty to our customers and partners of the iron foundry; we want to handle everything as smoothly as possible in order to fulfil existing orders, but we will not accept any new ones’.