Blow molding machine maker Kautex Maschinenbau declares insolvency
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The Germany-based company reportedly is in discussions with several potential investors.
Extrusion blow molding machinery maker Kautex Maschinenbau GmbH has declared the production site at its headquarters in Bonn, Germany, to be insolvent.
In an Aug. 28 news release posted on its website, the company said the declaration doesn’t affect its operation in Shunde, China. Kautex also said that development of the Bonn site into an “innovation and service centre with associated production of sustainable high-end technologies” is continuing despite the insolvency.
Kautex officials said the insolvency decision was caused by “uncontrollable external developments” that have impeded the finalization of a company realignment that’s been underway since 2019. According to Kautex officials, these factors include COVID-19 and China’s subsequent lockdown, supply chain difficulties, inflation, a shortage of skilled workers in Germany, and political uncertainties created by Russia’s invasion of Ukraine.
The 2019 realignment itself was at least partly in response to the transformation in the automotive industry and the disruptive shift from combustion to electric engines, the release said.
“Our realignment was affected by many developments over which we had no influence,” said Thomas Hartkämper, CEO. “All stakeholders are actively involved and fully support our chosen path. We will continue to follow it together in the future. We live our DNA of passion and resilience. The next steps are not easy for us, but we will not let this deter us from our path either.”
In the release, Kautex CFO Julia Keller added that the company is already in talks to secure additional funding. “A structured M&A process has already been set up and intensive negotiations have been conducted with several potential investors,” she said. “This process will continue and is currently ongoing.”