Swiss Sewing Giant Bernina Considers Thailand Production Amid Strong Franc

A 133-year legacy is trembling as Bernina, the iconic Swiss sewing machine manufacturer, confronts a brutal economic reality. Established in 1893, the company's Steckborn headquarters has long been a fortress of Swiss precision engineering. However, that fortress is now under siege. The relentless strength of the Swiss franc, paired with aggressive trade barriers, is forcing the company to consider the unthinkable: severing part of its production roots in Thurgau. This is not merely a strategic adjustment; it is a historic pivot that threatens to hollow out local industry.

The company has confirmed it is actively considering relocating production to Thailand, a move that places roughly 40 highly skilled jobs on the chopping block. While Bernina has weathered global storms for over a century, the current climate presents an unprecedented challenge. The "Swiss Made" label, once a guarantor of premium value, is becoming a financial liability in the face of currency disparities. As the franc surges, the cost of maintaining domestic assembly lines skyrockets, leaving traditional manufacturers with few options but to look abroad for survival.

Bernina is dangerously exposed to the whims of the American market, with a staggering 70% of its total group revenue generated in the United States. This heavy reliance has transformed from a strength into a critical vulnerability. The company is currently grappling with US tariffs that have hit a punishing 39%, effectively holding their profit margins hostage. When combined with the weak US dollar against the muscular Swiss franc, the financial math simply stops working for domestic production.

In a desperate bid to offset these costs, Bernina has already forced through significant price increases for US consumers over the last six months. However, the company admits the long-term impact of these hikes is "difficult to predict." The economic pressure is already manifesting in personnel cuts; just last autumn, seven assembly employees were let go, a grim precursor to the current crisis. Bernina assembled a task force to monitor the situation, but monitoring has now escalated to drastic action. The company is no longer just observing the trade war; it is becoming a casualty of it.

The proposed solution lies thousands of kilometers away in Thailand, where Bernina has quietly operated a facility since 1990. For decades, this site has handled the production of low and mid-price segment machines, serving as a complementary arm to the premium Swiss headquarters. Now, however, it stands ready to absorb the core manufacturing capabilities that Steckborn may lose. This is not a new experiment; it is the activation of a long-established contingency plan.

Relocating production to Asia offers an immediate escape valve from the pressure of the Swiss franc. By shifting assembly to an existing, lower-cost infrastructure, Bernina aims to bypass the currency and tariff stranglehold. While the company insists that the Steckborn site remains vital, the potential transfer of production signals a dramatic shift in the company's center of gravity. The infrastructure in Thailand is proven and ready, making the transition logistically feasible but symbolically devastating for the Swiss manufacturing sector.

The clock is ticking for the workforce in Thurgau. A consultation process is currently underway and will run until February 11, 2026, leaving dozens of families in limbo. Of the 334 employees at the headquarters, nearly 12%—around 40 people—face immediate redundancy. These are not just statistics; they are skilled laborers whose livelihoods are being eroded by macroeconomic forces beyond their control.

While Bernina employs over 1,200 people worldwide, the cuts at the headquarters strike at the heart of the company's identity. The consultation period offers a brief window for dialogue, but the economic imperatives driving this decision are rigid. If the relocation proceeds, it will mark another chapter in the deindustrialization of high-cost European nations. As February approaches, the mood in Steckborn is one of apprehension. The outcome of these weeks will determine whether Bernina remains a fully integrated Swiss manufacturer or becomes a brand managed from Switzerland but built in Asia.