The world's most famous teddy bear is turning its back on China as Steiff moves to take production of its plush animals back to Germany.

Steiff is rejecting globalisation to keep the fur gleaming on the world's poshest bears. Fed up with poor workmanship, high staff turnover, delays and rising shipping costs, it is moving bear production back to its birthplace in Giengen an der Brenz.

Martin Frechen, Steiff's managing director, said China was not capable of making a product to the level of sophistication it requires. It takes 18 months to train a worker to make a Steiff animal.

“If one of the glass eyes is a millimetre off, it means the adorable devoted look on the teddy bear's face ends up more like a stupid stare,” he said.

Steiff invented the teddy bear in 1902, branding its creations with a button in the bear's ear. In an effort to reduce the high cost of production, the company began outsourcing four years ago when it sent hundreds of staff to China to train the workforce.

Mr Frechen said: “What we expect, they cannot produce.” The rapid turnover of the Chinese workforce has been a problem as staff chase higher wages.

“At one of our competitors, one morning a third of the employees didn't turn up to work.” Steiff makes an expensive product and the firm has no desire to compete with mass-market toymakers.

However, the rising cost of manufacturing and shipping products from China is eroding the advantage of outsourcing a premium product. Delays have caused difficulty for a firm that has to respond quickly to fast-moving toy fashions.

The company suffered months of delays in the delivery of toys modelled on Knut, the famous polar bear cub in Berlin zoo.

“What we have learnt from the experience is that the things we do much better we do ourselves and that is how we keep our competitive advantage.”

Steiff was founded in 1880 by Margarete Steiff, who despite being disabled and wheelchair-bound from childhood, created a toy business sewing and stuffing felt animals. In 1903 the first Steiff bear was shown at a Leipzig trade fair where an American department store buyer ordered 3,000 and it became an immediate success.

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