The high-end sandal maker, headquartered in Linz am Rhein in Rhineland-Palatinate, wants to invest around 100 million euros in its expansion.
Almost four months after its takeover by investment firm L Catterton and financier Agache, which valued the company at nearly € 4 billion, Birkenstock management announced on Monday that it would invest around € 50 million in the modernization of its largest factory in Görlitz, eastern Saxony, which employs 1,900 people. The factory will mainly produce cork-latex sandals. For the production of synthetic sandals, an additional 50 million euros will be invested in the construction of a new factory. Information revealed by the German daily Handelsblatt.
A strategy that materializes the speech made by Bernard Arnault (linked to L Catterton via LVMH and at the head of Financière Agache) during the takeover. The luxury magnate then explained: “we will help Birkenstock to realize its great growth potential”.
According to Birkenstock, the company is examining three or four possible locations in eastern Germany and northern Bavaria for the new plant, which will initially create 400 jobs and then grow to 1,000 people. The decision is due in autumn 2021 and production is to start in the new factory in 2023. In Rhineland-Palatinate, the company already has a factory in Sankt Katharinen and a logistics center in Vettelschoß.
The Birkenstock brand was born in 1774. “We currently employ around 5,500 people worldwide, and the trend is on the rise,” a company spokesperson said. In 2019, Birkenstock had a turnover of approximately 720 million euros with 130 million euros in net profit. The company is also said to have generated revenues at roughly the same level as the previous year in the year 2020, despite two months of plant shutdown.
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