Validation & Relocation
The mandate began with the task of validating the already proposed relocation plan from Germany to Bulgaria in terms of feasibility and cost-benefit analysis, rather than implementing it without scrutiny. The management’s remit encompassed both a strategic review of the basic principles and operational support for the relocation of production, including the full integration of production in Bulgaria.
Relocation & Transition Risks
There was a lack of transparency regarding actual costs, investment requirements and economic viability as the basis for the go/no-go decision. At the same time, supply capacity had to be safeguarded during the transition, particularly in view of the risk of a slowdown in production following the announcement.
Added to this were capacity bottlenecks and a still insufficient level of process maturity at the target site in Bulgaria, as well as the need to ensure the transfer of know-how whilst simultaneously implementing socially responsible staff reductions in Germany. Furthermore, an assessment of alternative sourcing options between Bulgaria and China was required.
Two-stage hedging plan
A two-stage approach was adopted:
Firstly, the feasibility, costs and benefits were validated by comparing the baseline with Scenario A; subsequently, the implementation was managed.
In parallel, an immediate risk management framework was put in place to safeguard delivery capacity during the critical transition phase. The aim was to further develop production in Bulgaria and to review the sourcing strategy between Bulgaria and China using a SWOT analysis. In addition, an active human resources strategy was established in Bulgaria, alongside robust planning processes and ongoing risk management, to lay the foundations for the transition to normal operations.
Operational management & HR measures
The implementation involved a proposal for the Executive Board’s decision, including a profit and loss statement simulation (2026–2030) for the baseline and Scenario A.
To safeguard supply capacity in Q3/Q4, the internal announcement was postponed and additional orders were placed in China. Capacity bottlenecks in Bulgaria were resolved through a machine transfer and a SWOT analysis. On the HR side, a retention bonus was introduced, new managers were recruited in Bulgaria, and the legal groundwork was laid for the plant closure in Germany. Rolling 12-month planning and risk tracking ensured a smooth operational transition.
