Playmobil in Malta: A Corporate Success Story

Playmobil is a brand that pretty much every child knows. Even if traditional toys have fallen a bit out of fashion in the age of smartphones and tablets, the brand remains iconic. The company behind the product, Geobra Brandstätter GmbH, has been around in some form since 1876, though they only started making toys in 1926.

What many people don't realize is that those little plastic figures have quite a journey behind them—because a massive number of them are produced right here in Malta. The company operates one of its largest factories here, making it one of the island's most significant employers.

Playmobil Factory Employs 900 People in Malta

Playmobil has been manufacturing in Malta since 1974. Today, the output is staggering, with billions of plastic parts produced annually. Over the last 40+ years, Geobra Brandstätter has grown into a cornerstone of the local economy, currently employing nearly 900 people.

The obvious question is: Why did an entrepreneur like Horst Brandstätter decide to take the plunge and expand production abroad—specifically to Malta—back in the mid-70s? The explanation is actually quite straightforward.

Malta Offered Advantages Long Before the EU

Back then, Malta was a very different place. The country didn't join the EU until 2004, which is when it really started positioning itself as a hub for foreign investors by introducing structures like the Malta Limited.

While I'm absolutely certain that Geobra Brandstätter GmbH benefits from the tax advantages on the island today, the original motivation was different. In the 70s, wages here were significantly lower than in Germany—the wage gap was comparable to the difference between Europe and Asia today. Production costs were simply much lower.

Today, the company likely enjoys the best of both worlds. On one hand, wage levels are still lower than in Germany (even if that gap has narrowed significantly over the years). On the other, they now have the massive benefit of Malta's tax efficiency. Malta's EU membership and the resulting logistical ease have only sweetened the deal.

Playmobil is a product found in children's rooms all over the world, and—rightly so, in my opinion—it is a source of pride not just for Germany, but for Malta as well.