Tullau Pappen Shuts Down Two Production Sites, 90 Jobs Lost

Tullau Pappen has permanently ceased production at its Rosengarten-Tullau site in Baden-Württemberg and its Trauchgau facility in Bavaria, bringing nearly 150 years of operations to an end. The shutdown took place on Tuesday, October 27, 2026, and resulted in the immediate loss of approximately 90 jobs.

The closure followed the company's bankruptcy filing in early September 2026. Restructuring efforts and discussions with potential investors failed to secure the company's future, with substantial outstanding payments for European carbon dioxide (CO2) emission allowances cited as a decisive obstacle to a rescue.

The Tullau Pappen Group was already facing severe financial difficulties before filing for bankruptcy. The production of solid and gray cardboard is highly energy-intensive, and rising electricity, gas and oil prices since the energy crisis placed significant pressure on its manufacturing operations.

In addition to energy costs, the company faced substantial increases in raw material prices and labor expenses. However, intense international competition in the paper and cardboard industry limited its ability to pass higher production costs on to customers. Significant price increases risked substantial losses in sales volumes and revenue, further constraining the company's financial position.

The financial strain was compounded by a fire at a production facility in 2024, which caused property damage estimated at approximately €1 million and depleted the company's financial reserves.

Against this backdrop, the outstanding payments for European CO2 emission allowances ultimately prevented the restructuring process from succeeding, despite efforts to find investors and preserve operations.

The permanent closure of both sites marks the end of the company's long manufacturing history and leaves approximately 90 employees without jobs.