Business · Companies · 15 hrs ago
Faber-Castell to move cosmetic pencil production from Germany to Brazil
Faber-Castell is moving wooden cosmetic pencil production from Germany to Brazil and plans to stop making the pencils in Stein, near Nuremberg, by March 2027.
The company makes millions of these pencils each year for major cosmetics companies.
About 30 jobs are affected by the move, as part of a wider plan to cut around 130 of its roughly 1,200 jobs in Germany by spring 2027.
Faber-Castell says it tried for four years to make the German production profitable but could not.
Lower wages and access to its own pine supply make Brazil a more suitable location for the work.
The company cites global competition, US tariffs, cautious consumer spending and changes in retail as pressures behind its broader job cuts.
Faber-Castell is also expanding cosmetics production in the United States, where its Elgin plant is expected to make cosmetic formulas from late 2026.
Faber-Castell will move production of wood-cased cosmetic pencils from Germany to Brazil and end production in Germany by March 2027.
The company said it had been unable to make the German production profitable despite a four-year effort.
The move affects about 30 jobs at its plant in Stein, near Nuremberg.
Lower labour costs and access to its own pine-wood supply in Brazil are among the reasons for the relocation.
Faber-Castell is also expanding cosmetic production in the United States, where its Elgin plant is due to make cosmetic textures from late 2026.
- Who
- Faber-Castell, the German pencil manufacturer.
- What
- It will move wood-cased cosmetic pencil production from Germany to Brazil and end that production in Germany.
- When
- Production in Germany is due to end in March 2027.
- Where
- Production is moving from Stein, near Nuremberg, to Brazil.
- Why
- Faber-Castell could not make production in Germany profitable. Lower labour costs and access to its own raw materials in Brazil also favour the move.
This story does not have two clearly opposing sides.
Faber-Castell tried, with the help of a business consultancy, to make cosmetic pencil production in Germany profitable.
The company announced plans to cut about 130 of its roughly 1,200 jobs in Germany by spring 2027.
The Elgin plant in the United States is due to start producing cosmetic textures.
Faber-Castell is due to end cosmetic pencil production in Germany.
- Jobs affected by cosmetic pencil move
- About 30
- German jobs due to be cut by spring 2027
- About 130 of roughly 1,200
- German production site
- Stein, near Nuremberg
- Brazilian pine plantation
- More than 10,000 hectares
- US plant expanding cosmetic production
- Elgin