Press Release SHW High Precision Casting Technology GmbH before Shutdown
The company filed for bankruptcy for the third time in December 2018. More than 160 jobs at Königsbronn site are affected as the planned rescue attempt with major customers failed.
SHW High Precision Casting Technology GmbH in Königsbronn is expected to have to cease operations. The provisional insolvency administrator Martin Mucha of the Stuttgart law firm GRUB BRUGGER informed the 162 employees today in an employee information letter. The company is currently in its third insolvency proceeding within five years. The foundry was already closed in October 2018.
The Third Insolvency in Six Years
SHW High Precision Casting Technology is a foundry specialising in the production of rolls for the paper, food and coating industries, as well as wear castings for the grinding industry. The finished castings weigh between 100 kg and 120 t. The range of services also includes technical services such as roll calculation, design and -design, material selection and simulation.
Already in April 2013 and July 2017, the company was in economic difficulties and had to file for insolvency. Rheinische Mittelstandsbeteiligungs GmbH took over the Königsbronn plant in June 2018. In the course of the summer, it already became apparent that the new shareholder did not have sufficient financial resources to operate the business successfully. In October 2018, the foundry in Königsbronn was therefore closed due to a lack of financial resources. The management then launched a rescue operation together with the previous owner involving the main customers, but this failed at the beginning of December 2018. As a result, the management filed for insolvency.
"In order to raise the purchase price for the company, the investor sold the machines to a leasing company, which he then rented back from it for a high five-figure sum per month. The inventories were transferred to the pre-owner to secure the outstanding purchase price portion. Thus, at the beginning of the proceedings, I found a company with practically no material assets," reports Martin Mucha of the Stuttgart law firm Grub Brugger, who was appointed as provisional insolvency administrator. "The permanent restructuring situation and the unsuccessful investor solutions led to a lasting loss of trust among the clients. Immediately after filing for bankruptcy, I began talks with the main customers about restructuring the company's business operations, but these finally failed on Wednesday of this week after the main customers were unable to come to terms with the necessary financial support."
The temporary insolvency administrator then informed the staff today that it could no longer be assumed that the main customers would receive long-term support and that the company would in all likelihood have to cease operations.
About SHW High Presicion Casting Technology GmbH
SHW High Precision Casting Technology GmbH emerged from the foundry activities of Schwäbische Hüttenwerke. The roots of iron production go back to the year 1365, when monks in the Swabian Alb began to extract iron. SHW is one of the oldest industrial companies in Germany.
This article is based on a press release by SHW High Precision Casting Technology GmbH.