Company detailsCompany name: Electrostar GmbHCompany country: GermanyNumber of employees: 125Sector: C - ManufacturingSector detail: C27 - Manufacture of electrical equipmentSub-sectors: C27.5 - Manufacture of domestic appliances Reshoring detailsReshoring announcement date: 14/10/2016Starting implementation date: January, 2016End of Implementation : December, 2020Reshored to: GermanyLocation of affected unit(s): ReichenbachLocation code: DE111Reshored business function: ProductionPartial or Total reshoring: TotalReshoring governance mode: In house (in own facilities)Reasons for reshoring: Change in total costs of sourcingDelivery timeHigh inventory costsPoor quality of offshored productionProduction flexibilitySize of the lotsCase narrative: Electrostar is a Germany based company producing domestic appliances. In 2016, the company started to relocate in the home country production activities earlier offshored to China. It is expected all the production activities will be back-shored by the end of 2020. The company declared the relocation decision was based on several motivations: a) reduction of cost advantages initially offered by China; b) reduction of the lot size due to the firm's decision to increase the number of product variants; c) quality concerns; e) higher flexibility offered by producing in Germany; f) delivery time, and g) lower cost of storage. Sources: Aktiv 14/10/2016 Starmist 24/10/2016 Nrz 19/02/2018; Sources link: https://www.aktiv-online.de/arbeitswelt/detailseite/news/hausgeraete-ind... https://www.starmix.de/de/presse/starmix-holt-die-produktion-zurueck-nac... https://www.nrz.de/wirtschaft/erlebt-der-produktionsstandort-deutschland... Offshoring detailsOffshoring location: ChinaOffshored business function: ProductionReason for offshoring: Costs reductionHost country geographical area: China
