RESHORING CASE

Pewag

Company details
Code: 
Pewag
Company name: 
Pewag
Company country: 
Austria
Number of employees: 
1000
Sector: 
C - Manufacturing
Sector detail: 
C25 - Manufacture of fabricated metal products, except machinery and equipment
Sub-sectors: 
C25.9.3 - Manufacture of wire products, chain and springs
Reshoring details
Reshoring announcement date: 
08/07/2016
Starting implementation date: 
July, 2016
End of Implementation : 
December, 2016
Reshored to: 
Austria
Location of affected unit(s): 
Brückl
Location code: 
AT21
Partial or Total reshoring: 
Partial
Reshoring governance mode: 
In house (in own facilities)
Reasons for reshoring: 
Unattractiveness of the offshore market
Case narrative: 

Pewag is an Austrian chain manufacturing company, with a range of products including snow chains, tire protection chains, transmission chains and more. The company has decided to stop the production of one line of snow chains, the Konig brand, which is currently produced in a specialised plant in Molteno, Italy. At least 100 employees (out of 130 workers in the plant) will lose their jobs. Some activities including marketing, sales and logistics are expected remain in Molteno. Due to a dramatic drop in demand, production of the chain itself will be moved to other plants, in particular to Brückl, Austria, and Vamberk and Ceská Trebová in the Czech Republic.

Sources: 

Wirtschaftsblatt, 8 July, 2016

Offshoring details
Offshoring date: 
2008
Offshoring location: 
Italy
Offshored business function: 
Customer services
Offshoring governance mode: 
In house (in own facilities)
Offshoring entry mode: 
Wholly owned