Updated at 12:07pm with Economy Ministry statement
Carlo Gavazzi, the Swiss electronics manufacturer, has announced it will progressively reduce and eventually close its production operations in Malta, ending almost 40 years of activity on the island.
In a statement issued on Friday, the group confirmed that manufacturing in Malta will be phased out, with production shifting to its plants in Mexico and China. The company stressed that its overall product range will remain unaffected.
“We are approaching this process with care and respect for all those affected” the Group Chief Executive Officer said. “Our priority is to ensure that the process is conducted in a fair and dignified manner, with open dialogue and support for our employees and stakeholders throughout.”
The company said this development is shaped by external constraints and the need to consolidate operations across its global footprint. It has started talks with the relevant governmental authorities and employee representatives
The decision puts the future of around 140 workers at the Bulebel-based plant in doubt. Carlo Gavazzi has not yet disclosed when the final exit from Malta will take place.
Carlo Gavazzi first set up operations in Malta in 1988 and expanded in 1996, becoming a long-standing player in the local manufacturing sector. The company designs and manufactures electronic and electro-mechanical control components for automation.
Ministry in talks with stakeholders
The government has expressed concern following Carlo Gavazzi’s decision to close its Malta plant and relocate production to Mexico and China, saying the wellbeing of the company’s 230 employees is its immediate priority.
In a statement on Friday, the Economy Ministry said it had already opened talks with Carlo Gavazzi and other stakeholders to ensure that all affected workers receive support. This will include help in finding alternative employment and access to training opportunities.
The ministry emphasised that Malta’s labour market continues to generate strong demand for skilled workers and pledged to match new opportunities with those impacted by the closure. It added that it will remain in close contact with employees and their representatives during the transition.
While noting the setback, the government reaffirmed its commitment to the growth of Malta’s manufacturing sector, stressing that it will continue to promote innovation, sustainability, and job creation as part of a resilient economy.
Meanwhile, the General Workers’ Union (GWU) has pledged to defend the rights of Carlo Gavazzi employees.
In a meeting with management on Friday morning, the union was informed that the Bulebel facility will be wound down in phases, with the entire 140-strong workforce set to be made redundant over the coming months. Production will instead be relocated to the company’s sites in Mexico and China.
GWU Secretary-General Josef Bugeja described the decision as “a serious blow to a loyal and long-serving workforce who have given decades of their lives to this company.” He said the union’s immediate priority” was the welfare of affected workers and their families, and pledged that the GWU would use its full strength and resources to secure the best possible outcome.
The union confirmed that the first redundancies are not expected to take effect for at least seven months. In the meantime, it has opened a 30-day consultation process with the company, during which it will press for the strongest compensation packages possible and seek measures to soften the impact on staff.
Alongside negotiations with the company, the GWU said it would hold talks with the Economy Ministry and private industry to identify alternative employment opportunities for those affected.