Another crisis case in the German ceramic sector: Deutsche Steinzeug has filed for insolvency at its Alfter location. This puts around 1000 jobs at immediate risk. The company, which ranks among the established manufacturers of porcelain stoneware and ceramic wall cladding in Germany, thus becomes the second prominent insolvency case after Agrob Buchtal, which already had to enter self-administration in 2024.
The insolvency affects a production facility that manufactures tiles and porcelain stoneware for both the commercial sector and upscale residential and commercial projects. Unlike thin-walled standard tiles, the production of tall-format ceramic slabs with precise dimensional tolerances and low water absorption according to DIN EN 14411 requires considerable energy consumption at firing temperatures of up to 1250 °C. The drastically increased natural gas prices since 2022 have raised specific production costs per square meter by 30 to 40% — a burden that is difficult to pass on in the price-sensitive market.
At the same time, import pressure from Southern Europe and Asia is intensifying. Spanish and Italian manufacturers benefit from lower energy costs and higher production automation, while Turkish and Chinese suppliers are flooding the German market with large-format tiles at dumping prices. The already strained situation is exacerbated by shrinking construction demand: In residential construction, building permits fell by over 30% in 2023, while commercial construction projects are being delayed due to restrictive financing.
For planners and procurement managers, the insolvency means short-term supply risks for ongoing projects. Long-term, there is a threat of further decline in the German manufacturing landscape in the ceramic segment. The industry faces the question of whether consolidation — similar to the roof tile market with Wienerberger's acquisition of Creaton — is necessary to secure economies of scale and innovation capacity. Continuation of operations at Alfter is currently uncertain and depends on the willingness of potential investors to invest in a structurally stressed market.
The crisis at Agrob Buchtal had already shown that even traditional brand names are barely viable without restructuring and capital injection. The ceramic sector urgently needs answers to the trio of energy costs, import competition, and weak demand — or production will continue to withdraw from Germany.
