Schunk Gerhard to discontinue operations by the end of 2026
Obernzenn, Germany, July 2, 2026 – The shareholders of Schunk Gerhard Carbon Technology GmbH have decided to wind down the company’s business operations in an orderly manner by December 31, 2026. The company, which employs approximately 50 people in Obernzenn, is facing ongoing competitive pressure from Asia and sustained declines in revenue across its product portfolio.
Market conditions for highly specialized carbon products—including miniature carbon brushes, sliding contacts, and related assemblies—have undergone a lasting shift. Demand, manufacturing activities, and competition are increasingly concentrated in Asia, particularly in applications for small and micro motors. For Schunk Gerhard Carbon Technology GmbH (SGCT), these developments have fundamentally altered the economic foundation of its business. Neither the company’s export share of approximately 70 percent nor new product initiatives were sufficient to offset the structural changes in the market environment. Expected growth driven by innovation failed to materialize and could not compensate for declining revenues in the company’s core business.
Against this backdrop, the shareholders of Schunk Gerhard Carbon Technology GmbH have decided to discontinue operations at the end of 2026. Since 2019, the company’s revenue has declined by approximately 25 percent. Over several consecutive years, SGCT has repeatedly relied on short-time work arrangements. No market recovery is expected in the years ahead. The planned discontinuation of operations will affect 49 employees, including three apprentices.
Founded in 1969 by Alfred Gerhard in Markgröningen, near Ludwigsburg, Schunk Gerhard Carbon Technology GmbH specializes in the manufacture of sliding contacts, miniature carbon brushes, and related assemblies. For the past 30 years, the company has operated as part of a joint venture with Schunk Kohlenstofftechnik GmbH, a company of the Schunk Group. Established in 1996, the partnership expanded the Group’s portfolio in the field of miniature carbon products, which have since been distributed worldwide for industrial and automotive applications.
“Anyone who has led a family-owned company and helped shape its development together with a globally operating group over several decades does not make a decision like this lightly,” said Andreas Gerhard, long-serving Managing Shareholder of the company. “Schunk Gerhard Carbon Technology stands for technical expertise, entrepreneurial commitment, and the exceptional loyalty of its employees. We can be proud of what has been built here. For many years, the company was a successful flagship business that grew through the Group’s global sales network. At the same time, it is our responsibility to acknowledge market realities—even when the consequences are deeply painful.”
Gerhard Wulz, Managing Director of Schunk Kohlenstofftechnik GmbH: “After carefully evaluating all available options, it has become clear that even restructuring measures cannot create an economically viable future for the business. An orderly wind-down of operations is therefore a difficult, but necessary decision.”
Existing customer orders will be fulfilled according to current planning. Customers and business partners will be informed directly about the next steps.