As global markets increasingly demand sustainability and circular economy concepts are on the rise, products have to change as well. In this state of research paper, we discuss effects of circular economy concepts on production. Our research consists of four pillars. Due to circular economy, products or their components will be more often brought to a second life and thus their design should be more modular to allow efficient composing and decomposing. Second, the flexibility of production needs to increase to allow for the integration of dis- and reassembly steps. As a basis, we discuss how circular production layouts will change as products and components are reintegrated into production. Thirdly, this increase in complexity requires more elaborate information systems support. We discuss requirements and we present a software-based optimization approach for production layout planning. Fourth, IT platforms enable new ways to reach customers and more flexible business models. Thus, traditional production companies can innovate and transform towards providing industrial goods services. Finally, we present how we want to illustrate our intended research based on a model factory.