Swiss Sewing Machine Maker Ponders Thailand Production

United States tariffs and the strong Swiss franc are causing the traditional company in canton Thurgau great difficulties. Bernina generates approximately two-thirds of its revenue in the US.

In the autumn, sewing machine manufacturer Bernina announced that seven employees in the assembly department had to leave the company. The reason given was economic difficulties.

+ Swiss industrial roots hold firm despite strong franc

These were attributed to US tariffs – then at 39% – ​​and the strong Swiss franc against the US dollar. The company assembled a task force to continuously assess developments in the US.

Bernina has produced high-priced sewing machines from its headquarters in Thurgau since 1893. The company's products are particularly in demand in the US. Bernina is heavily dependent on the US market, with around 70% of the group's revenue comes from its US business.

This has been especially noticeable in the last six months, according to a press release. Significant price increases had to be implemented in the US. The impact of this is difficult to predict.

The company has now announced that production will be relocated from its Steckborn site to another country. Employees were informed of the plans on Monday.

Bernina has also operated a production facility in Thailand since 1990, where, according to the company's website, sewing machines in the low and mid-price segments are manufactured.

Should production be relocated to Asia, a maximum of 40 people would be affected, Bernina writes. Around 330 employees work at the Thurgau headquarters. Worldwide, according to Bernina, the number is more than 1,200. A consultation process will run until February 11.

Industrial policies are back in fashion, not only in the United States but also in the EU. Should Switzerland, where various industries are struggling, draw inspiration from such policies?