Lohnfertigung is the German term for contract machining: a supplier makes parts to the customer's drawing and order on its own machines, for a fee. Verlängerte Werkbank, literally "extended workbench", describes the same arrangement from the buyer's side, with the supplier's machines working as an extension of the buyer's own shop.
What does Lohnfertigung mean in English?
Lohnfertigung joins Lohn (wage, fee) and Fertigung (manufacturing). In English it is contract machining or subcontract machining when the processes are milling and turning, and contract manufacturing or subcontracting in general. The supplier does not design the part. The buyer's drawing defines what is made, and the supplier answers for conformity to it.
The word does not say who buys the raw material. The Tacto purchasing glossary describes Lohnfertigung as work where materials and product design stay with the customer, and its Lohnbearbeitung entry likewise has the customer supply the material and pay only for the processing; the same glossary uses the separate term Auftragsfertigung for work where the supplier sources the material. We found no definition of the term in the BGB or in an ISO or DIN standard. The order has to supply it.
What does verlängerte Werkbank mean?
It means extended workbench: outside machines and operators used as if they belonged to your own shop floor. The supplier brings spindle hours and tooling. You keep the released drawing, the material specification, the inspection plan and the release decision.
Our reading of the two terms is that Lohnfertigung names the transaction and verlängerte Werkbank names the standing relationship that repeat orders create. That is how we use them here, not a definition from a standard. The article on the extended workbench for Tier 2 suppliers covers when overflow capacity makes sense and what has to stay under your control.
How do the related German terms differ?
Five terms come up in German drawings, enquiries and purchase orders. Only Lohnbearbeitung and Beistellung settle the material question.
Table 1. Terms around contract machining
| German term | English | What it describes | Material supplied by |
|---|---|---|---|
| Lohnfertigung | contract machining, subcontract machining | Supplier makes parts to the buyer's drawing and order | Not fixed by the term |
| Lohnbearbeitung | processing of customer-supplied material | Supplier performs a processing step | Buyer |
| Verlängerte Werkbank | extended workbench | Lohnfertigung used as standing capacity under the buyer's control | Not fixed by the term |
| Beistellung | customer-supplied material | Material, parts or tools the buyer sends to the supplier | Buyer |
| Build-to-print | build-to-print (English trade term) | Supplier makes to a finished drawing, buyer owns the design | Not fixed by the term |
Source: usage as described in the Tacto Einkäufer-Lexikon entries for Lohnfertigung and Lohnbearbeitung, accessed 2026-10-30; Ertaş Engineering assessment.
Because the terms overlap, an enquiry that says only "Lohnfertigung" leaves the supplier guessing whether to quote material. State it in one line.
Who supplies the material, and why does it matter legally?
Material supply decides which contract rules apply. Two cases mark the ends of the range.
Table 2. Contract classification by material supply
| Case | German law (BGB) | CISG, Article 3(1) |
|---|---|---|
| Supplier buys the material and delivers the finished part | § 650: purchase law applies to a contract for delivering movable things still to be manufactured. For non-fungible things, §§ 642, 643, 645, 648 and 649 of the Werkvertrag rules apply as well | Treated as a sale |
| Buyer supplies all material, supplier only machines it | Werkvertrag. § 631(2) names the manufacture or alteration of a thing as a possible object | Not treated as a sale if the buyer supplies a substantial part of the materials |
Source: BGB §§ 631 and 650 (gesetze-im-internet.de); CISG Article 3(1) (text copy, University of Göttingen). Classification of a real contract depends on its facts.
Mixed cases exist. § 650 BGB itself addresses a purchase-law contract in which a defect traces back to material the buyer supplied, by applying § 442(1) sentence 1. Have counsel read your terms before relying on either row. This article is not legal advice.
For a German buyer and a supplier in Bursa, the CISG may matter. UNCITRAL lists both as parties: the Convention entered into force for Germany on 1 January 1991 and for Türkiye on 1 August 2011. Parties can exclude it, so check whether your terms of purchase do.
Customs is a separate question from the contract. If you send your own EU goods to a supplier in Türkiye for processing, the European Commission describes outward processing as the special procedure for temporarily exported EU goods, and it requires an authorisation from the customs authorities. Settle this with your customs broker before the first consignment. The article on importing machined parts from Türkiye to Germany covers the import side.
What should an order state, whichever term you use?
Put these in writing, because no term in Table 1 settles them on its own:
- Who buys the material, who owns it while it is in the supplier's hands, and who bears scrap from yield loss.
- The drawing revision and a general tolerance class, for example ISO 2768-m. DIN Media lists DIN ISO 2768-1:1991-06, the German adoption of ISO 2768-1:1989, as current.
- The certificate type from EN 10204, for example 3.1. DIN Media lists DIN EN 10204:2005-01 as current.
- A delivery term with its edition, for example FCA Bursa, Incoterms 2020. ICC lists Incoterms 2020 as the most recent version.
- The governing law, and whether the CISG is excluded.
The article on NDA, IP and warranty clauses covers the contractual side, and the supplier qualification checklist covers the audit.
Our audited network in Bursa makes parts to the customer's drawing, from CNC milling and turning to sheet metal, welded assemblies and casting with machining. It works to ISO 2768-m as standard, and tighter where the drawing specifies it.
Frequently asked questions
- What does Lohnfertigung mean?
- It is the German term for contract machining or subcontract manufacturing: a supplier makes parts to the customer's drawing and order, on its own machines, for a fee. The word does not say who buys the raw material, so the order has to state it.
- What does verlängerte Werkbank mean in English?
- Extended workbench. It describes outside machining capacity that works to your drawings, material specification and inspection plan as if it were part of your own shop floor. The contract form is build-to-print.
- What is the difference between Lohnfertigung and Lohnbearbeitung?
- One German purchasing glossary (Tacto) uses Lohnbearbeitung for work on material the customer supplies, where the customer pays only for the processing. The same glossary reserves supplier-sourced material for a separate term, Auftragsfertigung.
- Is Lohnfertigung a Werkvertrag or a Kaufvertrag under German law?
- It depends on the contract. If the supplier delivers a finished part made from its own material, § 650 BGB applies purchase law, together with some Werkvertrag rules for non-fungible parts. If the supplier only machines material you supply, the contract is typically a Werkvertrag under § 631 BGB.
- Does the CISG apply to contract machining between Germany and Türkiye?
- It can. Both countries are parties, and Article 3(1) treats contracts for goods still to be manufactured as sales, unless the buyer supplies a substantial part of the materials. The parties can exclude the Convention, so check your terms of purchase.
Sources
- § 631 BGB, Vertragstypische Pflichten beim Werkvertrag (Gesetze im Internet)
- § 650 BGB, Werklieferungsvertrag (Gesetze im Internet)
- CISG Article 3, text (University of Göttingen)
- CISG status, entry into force for Türkiye and Germany (UNCITRAL)
- Outward processing (European Commission, DG TAXUD)
- Lohnfertigung, Einkäufer-Lexikon (Tacto)
- Lohnbearbeitung, Einkäufer-Lexikon (Tacto)
- DIN ISO 2768-1:1991-06, General tolerances, status current (DIN Media)
- DIN EN 10204:2005-01, Metallic products, types of inspection documents, status current (DIN Media)
- Incoterms 2020 rules (International Chamber of Commerce)
Questions on a drawing? sales@ertas.engineering