Pelikan’s Manufacturing Future Uncertain After Hamelin Takeover

Hamelin Headquarters
Loo Hoo Keat and Eric Joan

Malaysian entrepreneur Loo Hooi Keat and Hamelin’s CEO Eric Joan shake hands to seal the deal after the brand’s sale

Pelikan's Peine-Vöhrum manufacturing facility
Pelikan's Peine-Vöhrum manufacturing facility

Pelikan’s Peine-Vöhrum manufacturing facility, operating since 1973

Stahlwerkbrücke, Peine, Germany

Hamelin is reportedly eyeing a vacant parcel of land that sits in an industrial area at the intersection of Ostrandstraße and Lehmkuhlenweg

References

27 responses

    • Nothing has changed for the time being. Business continues as usual. We’ll see the usual spate of releases this year. This is just a thought piece exploring Hamelin’s corporate mindset and how that might impact manufacturing in Peine. I don’t think anyone really knows what direction we are ultimately headed so it’s stay tuned for now. Perhaps this article will also serve to give Hamelin some food for thought as they formulate their strategy.

  1. Very well written article, but sadly, it is also worrisome about what will happen to the magnificent Pelikan fine writing instruments. I hope that the Pelikan brand does not follow behind what happened to both the Parker and Sheaffer pens, and to a much lesser degree, Cross pens.

    • Thank you. Yes, worrisome indeed. Hamelin seems to do their research so I’m hopeful that they will come to the right conclusions. The CEO seems to have a good head about him.

  2. As a total devoté of Hamelin’s Oxford paper this sentence really caught my eye: “For example, Hamelin closed the Lecas paper mill in Charente, France last year, where Oxford diaries were made for over 50 years. Production has since moved to Turkey and Romania, where costs are lower.” I had heard rumours of a change in Oxford’s quality over the past year but haven’t gotten deep enough in my stash to experience any changes. I hope Oxford’s paper formula isn’t as sensitive to machine and location changes as TR was!!

    • The rumours are true unfortunately, the new Oxford Optik Paper + isn’t nearly as good as the older paper. The regular Optik Paper hasn’t changed (yet?), but it’s getting harder and harder to find any.

      On the other hand Hamelin is also behind J. Herbin and Clairefontaine (AFAIK) and has handled both brands fairly well, especially with regards to their heritage. Pelikan is a German brand just like Sheaffer is an American one and to move production would kill the brand.
      I think even the school and office supplies are somewhat sensitive areas, a lot of people buy Pelikan rather than often much cheaper rival brands because it is a German company with many products still being made in Germany. There’s already a lot of competition in the market from other German brands (Faber-Castell, Staedtler, Stabilo, Lamy,…), so unless Pelikan also reduces prices significantly (unlikely and even then it would probably still be a bad move)) any changes would most likely in a significant loss of domestic market share.

      I believe Hamelin is well aware of this and bought Pelikan as their premium brand, so I’m still somewhat optimistic. Prior to the sale Pelikan was also already profitable again.

      • I do believe that Pelikan is one of the “Premium” brands in Hamelin’s portfolio and they know that. I expect they will treat it accordingly. It is also true that the prior Malaysian owners were did not optimize efficiencies after certain acquisitions. I think that is the streamlining we are seeing now, perhaps something that should have happened years ago to be honest. I do expect Hamelin to be better stewards of the brand than the prior owners ever were but that might just be my hopeful naivety. I also am inclined to agree that part of the brands allure for consumers is the reputation for “German quality.” I think that reputation has been earned but it could just as easily be squandered if not cared for.

    • That is interesting. I’d be curious to know of your experience should you observe a change in quality over time. Of course, so many factors can contribute to that but hopefully it will not come to pass.

  3. Not knowing the economics of the Luxury Writing business presents a challenge. Moving school supplies and other “crank it out” products to another location and streamlining certain other processes is one thing, but putting a high profitability (I assume) division at risk is quite another. Imagine the Pelikan line produces high margin and steady profit–and you state the CEO seems reasonable and smart. He’s going to give thorough thought as to moves with high margin and profitability. It’s entirely possible I demonstrate wishful thinking, but this could end up a blessing.

    All the best

    • I do hope that you are right. We’ll just have to wait and see how things play out. I’m particularly interested to see how the recent turmoil in the global economy might play into corporate decision making.

  4. Joshua, you seem to be really well-informed about the Pelikan company, and I regularly read your articles with great enthusiasm.

    Thank you for the article with all this information on the company’s status quo. I, too, am a huge fan of the Pelikan brand and have built a relationship over many years that I don’t have with my other fountain pen brands. Perhaps it’s also because my very first fountain pen was a “Pelikano 4.”

    I find it worrying what one reads and hears about Pelikan’s future – unfortunately, nothing positive.

    Let’s hope the new models attract widespread interest and find many buyers – and that the CEO makes a sensible and wise decision that allows us collectors and enthusiasts to look forward with optimism.

    Are there any plans for a hub event this year like in previous years?

    • If I am informed, it is only through diligent research and an ardent interest. I have no special window into the company I’m afraid but I do suppose enthusiasm makes up for a lot. No official word on a Hub event yet but it is a touch too soon anyways. Hopefully we will hear about a Hub before long as May has been the date of announcement in recent years.

  5. Thank you for this detailed report on the Pelikan situation. I started my fountain pen collection with the Pelikan M815, M800 Renaissance and M1005 Stresemann. After that the waiting game started and since then I am truly sorry to say, nothing interesting on the M80x/M100x front has been released. Meanwhile I have resorted to Montegrappa (custom) celluloid fountain pens and Pilot fountain pens (such as the limited edition Rikka 823) but my true love is for Pelikan. Pelikan has the reputation that would make me purchase a new interesting release without hesitation, but the releases of late just haven’t been that interesting. So please proof me wrong Pelikan and release a M805/M1005 Tortoise Black or how about an ocean swirl M1005?

    • I’m curious to know if the new M815 Metal Striped Blue qualifies as new and interesting for you, particularly since you already have the M815 Metal Striped Black.

  6. I hope they realise that nobody want’s to buy high priced german fine writing pens anymore if they are produced entirely in eastern europe or something. I get that they have to reduce cost somehow but it won’t work if Pelikan ends up being just a subbrand of a french company

    • not ‘nobody’. I was only vaguely aware of where they were made – I bought on quality and reputation so it wont put me off.

      • And I think many would continue to do so. I do think part of that reputation is based on the mystique of German manufacturing excellence so that could take a hit if production were relocated, particularly if the relocation came with a decrease in quality.

    • There will always be people that buy but yes, your point is understood. It would certainly tarnish the brand in the eyes of many and turn quite a few off to the company. Hopefully that is something we will never see come to pass.

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  8. In reference to last paragraph, for me the scariest tales aren’t those about Sheaffer and Parker because they still exist and we can still enjoy (more or less) their products like e.g. Duofolds. The scariest tales are about those once big and with excellent products which didn’t survive like Soennecken. Its 111 series was competitive or even superior than Montblancs Meisterstück and today what has left? Just hollow brand which is stick to everything just like “premium” tag on Chinese goods.

    R.I.P. Soennecken 1875-1973

    • Yes, when a brand like Soennecken dies, it is a loss but when trademark rights are used to slap a name onto a lesser product, it really is a disservice to the credibility that name had earned.

    • I don’t think that is a fair assessment. There has been no announcement in either direction so it’s all just speculation at present. As far as I have heard, a Hub is still anticipated for later this year. I expect an announcement in the coming weeks.

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