Corona Crisis Aluminium Rheinfelden Group Faces Insolvency
The Aluminium Rheinfelden Group, a manufacturer of aluminum products, has to cover under a protective umbrella in order to avoid a possible insolvency. One of the reasons given by the company is the effects of the COVID-19 pandemic.
As the German daily newspaper Südkurier reports, the protective shielding procedure was opened on September 22, 256 employees are affected. The reason for this measure is the unexpectedly strong financial burden caused by the worldwide Corona crisis. According to the reports, however, the pandemic should rather be seen as an accelerator, as problems had already occurred before. For example, the company is working closely with the automotive industry, which is an important purchaser of aluminum products, but is itself known to be in a period of transition.
How Will Things Continue Now?
Südkurier quotes Petra Hartwig, the district manager of the Mining, Chemical and Energy Industrial Union, as follows: "After the reduction of 30 jobs, for which we had negotiated a social plan in July, we hoped to be able to avoid such a protective shield procedure." The aim now is to sustainably reorganize the Germany-based company by means of structural adjustments, thus improving its chances of survival.