GERMANY - Maja Mobelwerk, a prominent German ready-to-assemble (RTA) furniture manufacturer headquartered in Wittichenau, has declared its intention to cease production by the end of December 2023.

This determination has an impact on 450 employees who have contributed to the annual production of up to six million furniture pieces. The verdict follows a notification from a long-standing customer, stating its decision to terminate the partnership and discontinue all orders by the close of December 2023.

Despite considerable investments and diligent attempts to sustain production, including the pursuit of new high-volume clientele, no viable solution was discovered to maintain operations in Wittichenau.

The outlook for 2024 and 2025 does not hint at a substantial recovery. A blend of factors, including the energy price shock from the Russia-Ukraine conflict and elevated inflation, has dampened consumer demand. Market uncertainty, combined with the aftermath of the pandemic, has further diminished the requirement for new furniture.

Uwe Gottschlich, Managing Director of Maja-Mobelwerk GmbH, underscores the company's dedication to aiding all impacted employees during the shutdown process and finding fitting resolutions for them.

Since its establishment in 1992, Maja-Mobelwerk GmbH in Wittichenau has significantly contributed to the furniture industry. Specializing in large-scale lightweight furniture, the company has played a crucial role in the sector's advancement over the years.