ARRI has been quick to dismiss any suggestions that it is planning to wind down its lighting business. The concerns arose following ARRI’s decision to close two factories in Germany.
Factory closures
As we reported yesterday, ARRI has announced that it is closing two factories in Germany. The sites at Stephanskirchen and Brannenburg are two of ARRI’s lighting factory, repair, and distribution centers. Both factories are set to cease operation by the end of this year, so in the next few weeks. While a third of employees affected by the closures will be moved to ARRI’s headquarters in Munich, 150 people will be made redundant.
Due to the nature of the factories being closed, there was speculation that ARRI was moving away from its lighting business.
What has ARRI said?
A spokesperson for ARRI sought to quash the rumors over the future of its lighting business. The company responded by email to PetaPixel. Kevin Schwutke, the Senior Vice President, Corporate Development, Brand & New Business, confirmed that ARRI was not stopping making lights, rather that the closures were part of a move to consolidate the business. He stated, “ARRI is not exiting lighting: like many companies in the film industry, ARRI is undergoing a significant transformation to address lasting shifts in market demand while reinforcing its core strengths, and lighting remains a central pillar of our business.”
Schwutke went on to say, “In line with this, we have made the strategic decision to centralize the research, development, and product management of our Lighting Business Unit at our Munich headquarters and, by the end of 2025, operations at our Stephanskirchen and Brannenburg development and production sites will be discontinued.”
However, Schwutke did not respond when PetaPixel asked if there would be any reduction in ARRI’s production capacity for lighting.
What we think
After yesterday’s concerning news regarding the factory closures, it’s good that ARRI has come out to clarify its position. However, it’s notable that the company has only mentioned its research, development, and product management moving to Munich. This may mean that manufacturing will be reduced or possibly moved overseas, perhaps.
In addition, back in August, we reported that ARRI was considering a full or partial sale of the business. The company was also working with the consultancy AlixPartners to find ways to streamline its business operations. The factory closures at Stephanskirchen and Brannenburg could be the next steps on that journey.
