The announcement was made in the midst of the company’s restructure following its self-administered insolvency proceedings, owing to a high rise in energy costs and procurement prices for raw materials.
According to Heiner Kayser, MD, Feldmuehle, by discontinuing the production of graphic papers its paper machine 2 will be shut down and there will be job cuts from 400 to 180 staff.
“The management presented the overall concept on December 7, 2018, as part of an employee meeting with simultaneous commencement of the negotiation of the social plan with the works council,” the company said in a statement.
On November 19, 2018, Feldmuehle filed for an application with the competent local court in Pinneberg to open insolvency proceedings under its own administration pursuant to Sections 270, 270 a para. 1 InsO (German Insolvency Act).
During the year management had tried to implement measures to increase operating profitability but despite these efforts, ‘the latently rising variable costs could not be offset by implemented price increases, partly due to the company's lower-than-expected revenues in September and October 2018’.
Following the management's application, the Pinneberg Local Court ordered the provisional self-administration on the same day. (71 IN 238/18).
Dr. Dietmar Penzlin of Schmidt- Jortzig Petersen Penzlin Insolvenzverwaltung Partnerschaft von Rechtsanwälten, Hamburg, was appointed as provisional administrator.
The provisional administrator shall examine the economic situation and supervise the management. However, the company's management retains power of disposition.
Restructuring within the framework of self-administration gives the company's management the opportunity to undertake and respectively implement all necessary measures to improve profitability and to take measures towards the company's sustainable competitiveness.
At the same time, an application to the Pinneberg Local Court has been filed that future deliveries and services ordered by Feldmuehle shall be paid as mass liabilities. Business operations will be continued.
Feldmuehle develops and manufactures white coated label papers and packaging papers for the German and international market.
In these two business areas, the company offers a product portfolio for the label and packaging industry, printing houses, brand owners and converters.
Since June 15, 2018, the company is part of a subsidiary of the Berlin-based Beteiligungsgesellschaft Kairos Industries.