Birkenstock secures factory near Dresden for 18 million euros!

Birkenstock secures factory near Dresden for 18 million euros!

What's going on at Birkenstock? The company has just secured a new production facility near Dresden. Birkenstock acquired the factory, which became vacant due to the bankruptcy of the previous owner, for 18 million euros. The traditional company is thus taking an important step towards expanding its production capacities, and of course more cost-effectively than if it had had to build a new building. So reported Fashion Network.

The new facility has an impressive 78,000 square meters of space for production and logistics. The plans call for the factory to be operational by the end of fiscal year 2027. Initially, capacities for sandals, clogs and footbeds will be expanded. But that's just the beginning; Birkenstock is specifically looking for further production opportunities within the European Union in order to further strengthen its production Börsen-Zeitung supplemented.

Strengthening the sales forecast

And as if that wasn't enough, Birkenstock also raised its full-year sales forecast. In the fourth quarter, sales of at least 520 million euros are expected - a currency-adjusted growth of at least 18%. For the entire year 2025, Birkenstock would like to exceed the threshold of 2.09 billion euros. This is a welcome increase compared to the previous estimate, which was for growth of 15 to 17%. The company also wants to maintain its operating return on sales, with an Ebitda margin of 31.3 to 31.8%.

The full balance sheet will be published on December 18th, so the exact development of the company will only become clear then. Until then, attention will remain focused on the new production location.

Manufacturing and quality in focus

Birkenstock remains true to its strategy and pursues vertically integrated production. The products are mainly assembled in our own factories. What is particularly important is that all footbeds are produced exclusively in Germany, while other components come from Portugal. With qualified craftsmen and tailor-made technology, the company guarantees high quality standards and responsible use of resources. This information is provided by the Birkenstock website.

All shoes are manufactured in the EU, which meets strict regulatory frameworks. The company relies on raw materials from Europe and thus not only improves quality, but also ensures social and ecological responsibility during production. Birkenstock is therefore well on the way to meeting increasing demand through global expansion of manufacturing capacities. The process is continuously optimized with investments in modern facilities.

Finally, it remains to be seen how the new acquisitions and adjustments to the production strategy will affect Birkenstock's market position. However, one thing seems certain - the company has the right knack for successful investments and could develop into a pioneer in the industry.