Swabian Machine Building Giant Mayer & Cie. Files for Insolvency
Swabian global market leader in machine building, Mayer & Cie., has filed for insolvency. Despite celebrating its 120th anniversary this year, the company faces a massive drop in sales and rising costs, putting hundreds of jobs at risk.
The company, renowned for its knitting machines used in textile and automotive industries, and fletting machines for aerospace and oil and gas industries, has struggled with cheap competition from China. Sales have halved, and costs have exploded due to trade conflicts and rising energy prices.
Martin Mucha, the insolvency administrator, is working to secure the core competencies of the company. Despite the insolvency, business continues as usual with the management remaining on board. The company had previously overcome a restructuring in 2009, but this time, the distress in the German machine-building industry, with high energy prices, expensive financing, and weak demand, has proven too challenging.
Mayer & Cie., with around 280 employees, is a significant employer in Baden-Württemberg and beyond. The insolvency puts hundreds of jobs at risk. The fate of this traditional company reflects the broader distress in the German machine-building industry, and its future remains uncertain.
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