Pollmann seeks restructuring proceedings for three companies

Pollmann has applied for restructuring proceedings for three companies in its automotive supplier group, affecting about 500 employees, ORF reported. The application was filed on Tuesday at the regional court in Krems.

The companies are Pollmann International GmbH, Pollmann Austria GmbH and Pollmann Werkzeugbau GmbH. They intend to continue operating, and production is continuing, the group said.

The company said it was not planning “sweeping cuts” and aimed to retain most of its employees. It also said talks with potential investors were at an advanced stage.

The three companies’ combined debt is listed at 74 million euros. The works council and the Austrian Chamber of Labour have been closely involved because of the number of employees affected.

The group’s subsidiaries in the Czech Republic, Mexico and China are not affected by the Austrian proceedings. Neither is Maxxom Automation GmbH.

Pollmann said it had been working on a restructuring for some time. Measures included a change at the top of the company, the consolidation and relocation of one site to Karlstein an der Thaya, the sale of properties not needed for operations and a structured investor process.

“For a company of this size, a transformation and restructuring of this scale is difficult to achieve using its own resources, which is why initiating the restructuring proceedings was unavoidable,” the company said. Insolvency law expert Andrea Fruhstorfer will support the companies during the process.

Pollmann attributed the need for restructuring to the structural transformation of the automotive industry, describing it as a lasting shift currently affecting many European suppliers. Global vehicle production continues to grow, but pressure is building in the European market.