Playmobil shuts its last German factory over high costs

Playmobil's last employee watches as its German factory is dismantled

In Dietenhofen, southern Germany, the machines that once moulded the classic click figures have fallen silent. Playmobil has begun dismantling its last plant in the country, as it announced in February. The official reason: production costs have become unsustainable compared with cheaper alternatives elsewhere in Europe. Only one employee, Michael Ulbrich, refuses to leave, watching as outside contractors empty the facilities.

The paradox of the closure is that the same company keeps another plant running in the same municipality, Lechuza, which makes plant pots. The cost argument clashes with the energy reality: electricity in Germany is between 40% and 60% more expensive than in France, and labour bureaucracy — the so-called "standortnachteile" — makes employment even more expensive. Wages in destinations such as Malta or the Czech Republic are a third of the level, and taxes are a mere footnote.

The debate over German industrial offshoring has been simmering for months. Some analysts link the loss of competitiveness to energy policy after 2022: the nuclear phase-out and dependence on expensive gas. Others point to labour rigidity and high taxes driving out traditional industry. Meanwhile, toy production is moving to lower-cost countries, but the uncomfortable question is whether Playmobil — with its diversification into "proge" figures — will be able to maintain its margin in the new landscape.

The closure is not an isolated case: Germany's industrial sector has been losing steam. But the symbol of a childhood icon being taken apart piece by piece hits harder. With a single employee as witness, the last click-figure factory on German soil is now history.