German battery manufacturer Varta is closing a factory in the southern state of Bavaria due to the loss of a major customer, with 350 employees set to lose their jobs.
A company spokesman said on Tuesday that the customer, which was reportedly responsible for ensuring the site operated at almost 100% capacity, will no longer purchase button cells made at the site in Nördlingen.
The Frankfurter Allgemeine Zeitung and the Augsburger Allgemeine newspapers reported that the customer in question is Apple, and that the company intends to source its new batteries from China in future.
According to the FAZ, price was the decisive factor in the decision. Apple and Varta have not commented.
Bavarian Economy Minister Hubert Aiwanger called the development a "heavy blow" for the region and "another warning sign" for the German economy.
Varta has recently undergone a major restructuring to avoid insolvency, after reporting losses of €64.5 million ($74.8 million) in 2024.
The decision to close the plant was communicated to employees and the works council on Tuesday. Efforts are now being made to find “socially acceptable solutions” and to transfer individual employees to other sites.
Although the company has managed to secure new customers in recent months, the contracts are "nowhere near enough" to save the site in Nördlingen, company boss Michael Ostermann told the Wirtschaftswoche business magazine.