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GWU informed that Swiss Multinational Carlo Gavazzi is to close Its 37-Year-Old Malta Plant

VALLETTA, MALTA – 29 August 2025 – The General Workers’ Union (GWU) has been formally informed by the management of Carlo Gavazzi Limited of the company’s intention to wind down its Malta operations.

In a meeting held this morning at the company’s request, the Swiss-based multinational announced a phased closure of its Bulebel manufacturing plant, which will lead to a progressive reduction of its entire workforce of 140 over the coming months. The company’s official statement cites a restructuring of its affiliate, with production of products previously manufactured in Malta being moved to other Group locations, particularly plants in Mexico and China.

The GWU is meeting with all employees at the plant today to communicate the situation and begin the process of consultation. It is understood that the first redundancies will not take effect for at least seven months.

“This is a serious blow to a loyal and long-serving workforce who have given decades of their lives to this company,” said GWU Secretary-General Josef Bugeja. “Our absolute and immediate priority is the welfare of these 140 workers and their families. The GWU will use its full strength and resources throughout the consultation period to ensure every single employee’s rights are rigorously upheld and to secure the best possible outcome in this difficult situation.”

A central part of the upcoming discussions with the company will be to negotiate measures to mitigate the effects of the redundancies, including the best possible compensation packages for all affected staff. In parallel, the GWU will immediately enter into discussions with the Ministry for the Economy, Malta Enterprise, and other private companies to explore all avenues for absorbing the affected employees into alternative employment.

Carlo Gavazzi has been a fixture of Malta’s manufacturing landscape for nearly four decades. Established in 1988 as a small assembly operation, the Maltese workforce was instrumental in transforming the plant into a fully-fledged R&D, product management, and manufacturing centre. In 2006, the Group itself designated the Malta plant as one of its principal production locations, a testament to the skill and dedication of its local employees.

The GWU has now formally entered a 30-day consultation period with the company.