Layoffs announced by the company, affecting 100 employees in Waiblingen
Stihl, the German machinery manufacturer based in the Rems-Murr district, has announced a significant shift in its operations. The company will move the development and production of lawn mowers to China, capitalizing on the country's advanced robotics capabilities.
This decision comes as market trends favour self-learning robots that don't require a boundary wire around the lawn. Approximately 5000 people work for Stihl in the Waiblingen region alone, and the affected business is the development and production of lawn mowers. However, the company's other core products, including chainsaws, trimmers, blowers, and hedge trimmers, will remain at the headquarters in Waiblingen.
China is considered an attractive location for Stihl due to its advanced digital expertise and network of highly specialized suppliers in robotics, AI, and software applications. The new research center in China will focus on Stihl's robotics segment.
Stihl's CEO, Michael Traub, stated that the new center will combine Stihl's proven reliability and engineering prowess with China's technological dynamism. The company is planning to establish this new research center, which will primarily be responsible for developing wireless lawn mower models, a product currently not offered by Stihl.
The global robotic lawn mower market is rapidly growing, with Stihl positioned as a key player, competing alongside major companies leveraging advanced manufacturing techniques including robotics. Manufacturing in China allows Stihl to benefit from locally developed robotic automation technologies that streamline assembly and molding processes, crucial for complex components like those made via injection molding.
This move supports Stihl’s strategy to innovate and scale efficiently in the electric and robotic lawn mower segments—markets expected to grow significantly in the coming years. By integrating Chinese robotics in the production line, Stihl can optimize production processes, reduce costs, and meet the growing demand for sophisticated products like robotic and electric lawn mowers in a highly competitive market.
The job cuts at Stihl's research center in Waiblingen were first reported by the Zeitungsverlag Waiblingen (ZVW). The talks with the works council regarding the job cuts in Waiblingen are ongoing. Previously, Stihl had announced a global job cut of 500 positions, with most of these cuts anticipated to be in administration.
In summary, Stihl's decision to move operations to China is a strategic move to leverage Chinese robotics technology, enhancing manufacturing efficiency and precision. This move helps Stihl maintain competitive advantage by combining cost-effective manufacturing with high-tech automation available in China.
The strategic shift of Stihl's lawn mower development and production to China underscores the company's focus on the global robotic lawn mower market, capitalizing on China's advanced robotics capabilities and digital expertise within the business segment. The new research center in China will primarily focus on developing wireless lawn mower models, thereby integrating Chinese robotics technology into Stihl's manufacturing process to optimize production, reduce costs, and meet the growing demand for sophisticated products like robotic lawn mowers.
