The Eisengießerei Teutoguss and Lüneburger Eisenwerk (now Focast Lüneburg) foundries, have filed for insolvency.
According to Zeitschrift für Restrukturierung und Insolvenz, Teutoguss had entered insolvency proceedings again January 20th in Münster, following a slump in sales.
Teutoguss, which is based in Hörstel in the northern Münsterland region, mainly produces machinery and plant engineering.
The company had previously filed for insolvency in 2022, but saw its balance sheet recover.
The second proceedings are to be held in self-administration. The foundry hopes to maintain its business operations and stabilize them in the long run.
All 47 employees of the Teutoguss foundry were informed of the situation, following the firm's application to the responsible district court was filed. Employees will initially receive insolvency benefits from the employment agency for three months, instead of their wages and salaries. Nevertheless, business operations will continue unchanged.
Nada Nasser, the insolvency administrator for the proceedings, sees good prospects for Teutoguss. In view of the many orders the company has received this year, she believes that the company will soon become profitable again.
Teutoguss is now focusing on investors. Immediately after the application was filed, a structured investor process was initiated and starkpartners consulting was commissioned with the search for investors, according to Zeitschrift für Restrukturierung und Insolvenz.
“Teutoguss could be a useful addition for strategic investors from the machine casting or foundry sector,” said Thorsten Stark from starkpartners consulting.
According to the insolvency administrator, Focast Lüneburg recently recorded an annual turnover of 16 million euros. However, it ran into difficulties due to a tricky market situation with high costs for raw materials and energy, and the reluctance of important customers to make new investments.
“The pressure on the market was ultimately simply too great,” reported the insolvency administrator at Focast Lüneburg. “The shift in the international flow of goods as a result of the protectionism that has been observed has made competition much tougher for companies with production facilities in Germany. This is unlikely to change in the foreseeable future,” he said, according to the Lüneburger Landeszeitung.
The company has now begun preparations to approach potential interested parties for a takeover, in parallel with stabilizing its current business.
Focast Lüneburg specializes in high-quality cast products for machine and tool construction as well as for pumps and compressors and currently employs 120 people.
Source: www.lueneburgaktuell.de
