Kari Kapsch takes over supplier, saving 215 jobs

Kari Kapsch has taken over the Ebergassing-based auto supplier Eitec, securing the jobs of 215 employees as the business restarts under the name Kaitec. ORF reports that the deal follows months of insolvency proceedings and a bankruptcy.

Production under the new owner and name began on Monday. Employees had faced months of uncertainty after years of turbulence at the company. The former owner, Neptune Industries, was also under pressure after US prosecutors accused its owner, Patrick James, of billion-dollar fraud. An indictment was filed in January.

Kapsch said he sees opportunities despite difficult conditions in the European car industry, including from manufacturers outside Europe establishing plants in the region. Employee representative Michael Sumpich, who has worked at the site for more than 30 years, called the takeover “like a miracle”.

The company began more than 170 years ago as a carpet-weaving business and later became an automotive supplier under several owners. It once employed 800 people at the site. About a year ago, just over 300 people worked there. The plant makes textile interior fittings for major carmakers, mainly in Germany, and has long-term supply contracts for spare parts extending more than 15 years.

Managing director Stefan Kunz, who will continue to run the business alongside Kapsch, expects revenue of 71 million euros this year. The company will continue to focus on premium customers, producing items including luggage-compartment linings, upper pillar trim and floor coverings. It also plans to pursue new business in commercial vehicles and the railway industry, with the aim of eventually increasing annual revenue to as much as 250 million euros.