The insolvency administrator had already informed the approximately 250 employees in March about the withdrawal of the last potential investor and had already reached an agreement with the works council for a balance of interests and a social plan. In the meantime, the employees had received their dismissals and will gradually leave the company during the next few months. "This is of course disappointing for the colleagues who fought together with us to keep their company and hoped for an investor solution," said Danko, who has been running DGH Sand Casting since June 2022 and had kept the door open as long as possible for a restructuring. "However, without an investor, a continuation is economically and insolvency law-wise not possible."
Together with the works council, Danko explicitly recommended the employees of DGH Sand Casting to companies in the region: "The region around the Lake of Constance has a strong industrial backbone, and well qualified employees are a real competitive factor," said Danko. "The employees of DGH Sand Casting are not only very well qualified, but also very committed and experienced. I can only recommend companies to consider their applications."
Meanwhile, the insolvency administration and management team, together with the works council and the IG Metall trade union, are supporting the employees in finding a new occupation. A job exchange with job offers has been set up in the company. The employees also receive assistance in preparing their application documents. In addition, job application training is offered to prepare employees for specific job advertisements and for upcoming recruitment interviews.
The shutdown of production and business operations at the site will take place in three stages. First, the foundry will cease operations by the end of June. Until then, all existing foundry orders will be processed. Mechanical processing will be closed by the end of July. In addition, a team will be occupied with the remaining work at the site. This includes delivery, collection, and the processing of the remaining customer orders. By the end of the year at the latest, all operations will be completely shut down.
DGH Sand Casting manufactures aluminium sand-casting parts in Friedrichshafen that are used in the automotive industry (cars and vehicles) as well as in energy and heating technology. The products include lightweight parts and components for chassis and drive trains - both for combustion engines and electric vehicles, as well as heat exchangers for heating systems. The company's customers are well-known companies from the automotive industry and heating construction. The last annual turnover was around 37.8 million euros.
Like many industrial companies, DGH Sand Casting is suffering from the consequences of the Corona pandemic. The turnover has fallen by around 35 per cent since the beginning of the pandemic. The chip shortage and the war in Ukraine with its effects on supply chains and energy prices had recently worsened the situation to such an extent that the company had to file for insolvency in June 2022. Finally, several potential investors examined a possible takeover of the company. However, in the end, no investor was found.
About Danko Insolvency Administration
The law firm "Danko Insolvenzverwaltung" has more than twenty years of experience in the fields of corporate restructuring, insolvency, and labour law. With an interdisciplinary team of insolvency, labour and tax lawyers as well as business economists and administrative staff, the insolvency company is able to successfully handle even larger insolvency proceedings and extensive mandates. Among the well-known reference proceedings of law firm founder Dr Franz-Ludwig Danko are the automotive suppliers Druckguss Heidenau, FINOBA Automotive, Spezialguss Wetzlar and ttb Group, the soap manufacturer Kappus Group, the aircraft outfitter Anolis Interiors, the DRK Clinics of Northern Hesse, the Lippoldsberg Clinic and Rehabilitation Centre and the Prof. Dr Keck Acute and Rehabilitation Clinic. The Insolvency Administration has offices in Frankfurt am Main, Dresden and Kassel.
