Insolvency of Castwerk: Future of the Magnesium Die casting company in danger

Insolvency of Castwerk: Future of the Magnesium Die casting company in danger

The bankruptcy of the Magnesium Dietrgeuss company Castwerk in Frankenberg has far-reaching consequences for the local economy and the employees concerned. With the closure of the company, not only 140 employees lose their jobs, but also the region suffers from the elimination of an important economic stand.

dismissals: a difficult blow for the employees

As part of the bankruptcy, insolvency administrator Dr. Michael Lojowsky announce the termination of all employees of the castic. This decision was made after the failed attempt to find an investor who would have been willing to acquire and continue the company. The dismissals are effective by October 31, 2024 at the latest.

market changes: Customer orientation in search of alternatives

The problems of the castic did not start overnight. Due to financial difficulties, customers have started looking for more economic alternatives. This led to a decline in orders, which further tightened the situation. The insolvency administrator said that the customers were willing to carry the loss coverage, but ultimately favored alternative providers to minimize their own financial risks.

The way to bankruptcy: historical review

The castic has existed since 2015 and was originally founded as part of the printing and injection molding plant Hettich. Hettich even invested 12 million euros in new facilities in 2019 to expand the product range. After the takeover by Sierra Zulu GmbH and Niemeyer-Investment GmbH in 2022, it initially looked promising, but these companies also also had to register bankruptcy.

future perspectives for the employees

In order to alleviate the social consequences of the dismissals, the corporate management works together with the Federal Employment Agency and the union of socially acceptable solutions for the employees concerned. This is an important step to counter the layoffs and to offer support for the transition to new employment relationships.

regional effects: A look at Frankenberg

The closure of Castwerk not only has a direct impact on the employees, but also on the economic stability of the Frankenberg region. The loss of such an important company could affect trust in the local economy and deter potential investors. It remains to be seen how the region will deal with this setback and what measures are taken to promote economic relaxation.

Overall, the case of Castwerk shows how quickly economic challenges can have unforeseen consequences for the employees and the entire processing industry.