Chemnitz plant manufacturer wants to restructure itself in insolvency

STC Spinnzwirn GmbH has filed an application for the opening of insolvency proceedings at Chemnitz Local Court. (Archive image) / Photo: Hendrik Schmidt/dpa

The Chemnitz-based machine and plant manufacturer STC Spinnzwirn delivers all over the world. Recently, however, orders have become fewer and fewer. Preliminary insolvency proceedings are underway.

Weak order intake has put the machine and plant manufacturer STC Spinnzwirn GmbH in financial difficulties. The company filed an application for the opening of insolvency proceedings at Chemnitz Local Court, and lawyer Joachim Voigt-Salus from the law firm Voigt Salus was appointed provisional insolvency administrator, according to a statement.

The company reportedly has around 140 employees. Their wages and salaries are secured via the insolvency benefits from the Federal Employment Agency for May, June and July. Business operations will continue during the provisional proceedings. Insolvency proceedings are expected to be opened on 1 August.

"The core of the company is healthy."

"Our aim is to develop a long-term solution for the company together with all parties involved - whether by way of a restructuring within the existing structure or through a transferring restructuring. The core of the company is healthy," explained the provisional insolvency administrator Voigt-Salus.

The reason for the economic crisis was as follows: "Weak incoming orders, geopolitical uncertainties and continued reluctance to invest due to increased raw material costs in important sales markets such as the Arab region led to significant declines in sales and earnings. Out-of-court measures were unable to sufficiently cushion the increasing liquidity pressure."

StC Spinnzwirn GmbH reportedly originated in 1866 and has developed over many decades into a specialized supplier in international mechanical and plant engineering.

Chemnitz plant manufacturer wants to restructure itself in insolvency

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"The core of the company is healthy."

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