Steel crisis strikes: ASS Stahlservice files for bankruptcy!

Steel crisis strikes: ASS Stahlservice files for bankruptcy!

There is a crunch in the steel industry, and it shows: ASS Stahlservice GmbH, a medium-sized steel trader from Aalen, has filed for self-administration bankruptcy. The application was submitted to the district court in Aalen on September 4th, and managing director Joachim Schmid is optimistic despite the challenging situation. However, according to merkur.de, long-term continued operation is no longer possible.

The bankruptcy does not come as a surprise: the steel industry has been struggling with massive declines in sales for some time. Market developments, especially in plant and mechanical engineering, can no longer be compensated for. The managing director emphasizes that the decline in the last two years has been dramatic. In the first half of 2025 alone, crude steel production fell by almost 12% to just 17.1 million tons - the lowest level since the 2009 financial crisis, reports tagesschau.de.

Self-management as a restructuring approach

What is particularly noteworthy is that ASS Stahlservice GmbH will continue in the self-administration process. This means that the management remains able to act and is supported by lawyer Martin Hörmann as administrator. The aim of this procedure is to permanently preserve the Neresheim location and continue business operations, as stahleisen.de reports.

The new premises in Neresheim, which were only occupied in spring 2025, should be equipped with the latest warehouse logistics and technologies. But the cost situation has proven to be too challenging to ensure long-term survival. Dirk Eichelbaum from dhmp Restructuring supports the management in the already tense situation.

An explosive situation for the entire industry

Overall, the situation in the steel industry shows a worrying picture: high-priced energy costs, pressure from foreign markets and ongoing uncertainties - for example due to customs disputes with the USA - are taking a toll on companies. Larger players, such as Salzgitter and Thyssenkrupp, are also reporting declining results and have already responded to austerity measures and capacity reductions. In addition, domestic demand is suffering, particularly from the construction, mechanical engineering and automotive industries.

The management of ASS Stahlservice GmbH is confident that the modernized warehouse logistics and the existing customer proximity to the automotive and mechanical engineering industries could enable positive discussions with creditors. In the meantime, the wages and salaries of around 50 employees are protected through insolvency money until November.

It remains to be seen whether the self-administration process of ASS Stahlservice GmbH can bring the desired success and perhaps even become a ray of hope in the gloomy steel industry. One thing is certain: the industry is facing drastic challenges that cannot be overcome without a joint effort.