RESHORING CASE

Lissau

Company details
Company name: 
Lissau A/S
Company country: 
Denmark
Sector: 
C - Manufacturing
Sector detail: 
C13 - Manufacture of textiles
Sub-sectors: 
C13.92 - Manufacture of made-up textile articles, except apparel
Reshoring details
Reshoring announcement date: 
29/04/2017
Starting implementation date: 
August, 2017
Reshored to: 
Denmark
Location of affected unit(s): 
Vejle
Location code: 
DK032
Reshored business function: 
Production
Reshoring governance mode: 
In house (in own facilities)
Reasons for reshoring: 
Change in total costs of sourcing
Delivery time
Increased production costs in the host country
Local employees' poor skills
Poor quality of offshored production
Case narrative: 

Lissau is a Danish company producing sun screening and curtain solutions. In 2010, it offshored the production to an owned plant located in Lithuania to take advantage of the lower production costs. However, in 2017, the company decided to back-shore in its Danish plant (Vejle) due to: a) poor quality of the offshored production - mainly because of the  low skills of the local  employees; b) reduction of the labor cost gap between the two countries; c) high delivery times; d) total cost of offshored production.   

Sources: 

Vafo.dk 29/04/2017

Sources link: 

https://vafo.dk/erhverv/Produktionen-kommer-hjem-til-Bakken-efter-syv-aa...

Offshoring details
Offshoring date: 
2010
Offshoring location: 
Lithuania
Offshored business function: 
Production
Offshoring governance mode: 
In house (in own facilities)
Reason for offshoring: 
Costs reduction
Host country geographical area: 
Eastern Europe