Germany

German industrial automation provider Eisenmann SE has filed for insolvency and launched a strategic reorientation plan to help the company return to profitability in a plan that could see some business units sold off, corporate leaders said Monday, DC Velocity reported. Böblingen, Germany-based Eisenmann this week filed its petition for the opening of insolvency at Stuttgart District Court, also submitting applications for the related business units Eisenmann Anlagenbau GmbH & Co. KG, Eisenmann Lactec GmbH, and ENisco GmbH & Co. KG.

Downer EDI Ltd warned on Thursday that it expects a negative impact to its full year 2019 results following the insolvency of Germany’s Senvion SA, the company’s construction partner in the Murra Warra wind farm in Victoria, Reuters reported. Sydney-based Downer said wind turbine manufacturer Senvion’s bankruptcy would result in a charge of A$45 million ($30.83 million) for the full year, related to obligations for completing the wind farm.

German auto supplier Eisenmann, which supplied Tesla in 2015 with a new paint shop at its Freemont plant in California, filed for insolvency late on Monday, in a sign of the growing economic problems crushing profits in the auto sector, Reuters reported. Eisenmann, which has 3,000 employees and generated annual revenues of 723 million euros ($806 million) in 2017, filed for insolvency at the Stuttgart District Court. The Boeblingern, Germany-based company said it was now looking for a strategic partner for its Paint & Assembly, as well as its Application Technology businesses.

Bankrupt German wind turbine manufacturer Senvion has sufficient financing to stay afloat until the end of August, Chief Executive Yves Rannou said at a townhall meeting, according to a person who attended the meeting, Reuters reported. The company is hoping to strike a deal to sell some of its assets but not the whole company by then, Rannou said at the meeting on Tuesday, adding that talks with staff would now start regarding units for which no buyer can be found, the source said.

German car parts maker Leoni has started holding meetings with prospective buyers for its wire and cables division, which it has put on the block in a bid to bolster its cash position, people close to the matter said, Reuters reported. After sending out information packages earlier this month, Leoni’s management is holding informal talks with potential bidders, they said. Preparations for a listing of the unit have been put on the backburner given market conditions, they added.

Bankrupt German wind turbine manufacturer Senvion is in talks to buy time to strike a rescue deal as negotiations with potential buyers of the company continue, people close to the matter said, Reuters reported. The company is in discussions with creditors to extend a 100 million euro ($111 million) insolvency loan so it can avoid having to agree to sell at any price, they added. An original end-June deadline for final bids was dropped and a later envisaged end-July deadline is also being postponed, one of the people said.

German factory executives have reported that industry conditions are in “free fall”, according to a survey that comes just hours before the European Central Bank’s policy decision, the Financial Times reported. The Ifo Institute’s manufacturing business climate index slumped to minus 4.3 in July from positive 1.3 the previous month. The reading was the lowest in more than nine years and echoes a separate survey released on Wednesday that pointed to mounting troubles in Europe’s powerhouse economy.

Deutsche Bank’s plans to retreat from risky investment banking, fire thousands of people and return to its German roots may eventually create a healthier lender. In the short term, the overhaul will be a major financial drain, the International New York Times reported. That was made clear on Wednesday, after the bank reported a loss of 3.2 billion euros, or $3.6 billion, from April through June, as it subtracted the costs of a restructuring plan announced earlier this month. The plan is seen as a last-ditch attempt to arrest a decade of decline.

German auto parts maker Weber Automotive GmbH has been put up for sale as part of insolvency proceedings that started this month, according to a company spokesman. Weber filed for insolvency amid deteriorating earnings and a row between its founding family and majority shareholder Ardian SAS over the “form and scope” of a financial restructuring, Bloomberg News reported. Failure to rescue the ailing company leaves its creditors on the hook for what remains outstanding from a 130 million euro ($145 million) loan dating from 2016.

Heraeus’s quartz glass works in Bitterfeld and Nemak’s auto supplies plant in Wernigerode have little in common, outwardly at least, the Financial Times reported. But both have resorted to the same unusual manoeuvre to cope with Germany’s industrial slowdown. The three are among dozens of companies that have imposed “short-time work” on their employees, in what economists say could be the harbinger of trouble in the German labour market. Germany is in its tenth straight year of economic growth, with unemployment close to a record post-reunification low.