Siegwerk closes Swiss site, relocating production to Turkey as UV ink demand declines in Europe

TURKEY – Siegwerk has closed its only Swiss production site in Bargen, relocating manufacturing to Tuzla, Turkey, with over 100 employees receiving redundancy notices due to declining demand for UV printing inks in Europe.

Production in Bargen will cease in early 2027, earlier than anticipated. 

Siegwerk sees great potential in growth regions such as Eastern Europe, the Middle East, and Africa, and the Tuzla site allows the company to serve customers in these markets more efficiently and cost-effectively. 

The closure of the Bargen site affects 145 employees directly, with over 100 people receiving redundancy notices. 

Only 35 to 40 staff members will remain in the Bern region, where the technology department will be based.

The Decline of UV Printing Inks in Europe

UV printing inks cure instantly when exposed to ultraviolet light, enabling high-speed printing on non-porous substrates such as plastics, films, and foils. 

However, demand has been declining in Europe as brand owners and converters shift to water-based and energy-curable LED systems, which offer lower energy consumption and reduced volatile organic compound emissions. 

UV inks also require expensive photoinitiators and mercury-vapour lamps that are being phased out due to environmental regulations. 

The shift away from UV has accelerated as the EU’s Packaging and Packaging Waste Regulation pushes for more recyclable packaging, and UV-cured inks can complicate the recycling process.

High Costs in Switzerland

Switzerland has one of the highest labour costs in Europe, with stringent environmental regulations and expensive energy. 

The strong Swiss franc makes exports from Switzerland more expensive than from eurozone countries, eroding the price competitiveness of Swiss-produced goods. 

Siegwerk’s decision to move production to Turkey reflects a broader trend of industrial relocation away from high-cost Western European countries to lower-cost Eastern European and Eurasian locations. 

The Tuzla site in Turkey offers lower labour costs, access to growing regional markets, and tariff-free access to the EU through the EU-Turkey Customs Union.

Strategic Relocation to Turkey

Siegwerk, which employs over 5,400 staff globally across 13 countries, will continue to focus on expanding its international locations. 

Bargen was previously the company’s only production site in Switzerland. The move to Turkey allows Siegwerk to serve customers in the Middle East and Africa more efficiently, reducing shipping times and logistics costs. 

For a printing ink manufacturer, proximity to customers is critical for providing technical support and quick turnaround on custom formulations.

Subscribe to our email newsletters that provide busy executives like you with the latest news insights and trends from Africa and the World. SUBSCRIBE HERE