First publishedon www.AggBusiness.com
German off-highway diesel engine manufacturer Deutz has issued a statment supporting the change of ownership at its parts suppiler Neue Halberg Guss.
It made the statement after it was announced that investment group AVIR Guss Holding has signed an agreement through its subsidiaries Gusswerke Saarbrücken and Gusswerke Leipzig to take over the business operations of Neue Halberg Guss. No details on the purchase price were given.
Deutz says that the new ownership will ensure that it is supplied with the engine blocks, crankcases and cylinder heads it needs to manufacture its engines.
Neue Halberg Guss employs a total of 2,200 people at its foundries in Saarbrücken and Leipzig. One Square said that all employees of Neue Halberg Guss have the opportunity to work for Gußwerke Saarbrücken and Gußwerke Leipzig.
The change of ownership ends a months-long dispute between the workforce at Neue Halberg Guss and previous owner the Bosnian-German Prevent Group, which took it over at the start of 2018. Shortly afterwards Prevent Group said it would close the Leipzig plant and cut jobs at Saarbrücken. Subsequent talks with unions failed and production was hit by a 48-hour strike.
“After many months of intensive negotiations and associated uncertainty, a long-term solution has finally been found,” said Dr Frank Hiller, chairman of the Deutz board of management. "This gives us planning security and will ensure reliable deliveries to our customers."
Munich-based restructuring consultants One Square, which advised on the takeover agreement, commented: "A viable solution has thereby been found both for NHG’s employees and for customers who rely on its cast parts. Under this arrangement, the new owners, whom Deutz Group is actively supporting with partial financing, will acquire the relevant production facilities and land at the Saarbrücken and Leipzig sites."
One Square added that, following the takeover, AVIR Guss Holding will be "one of the largest and most important foundries in Europe and is an important factor in the supply chain for major automotive and engine manufacturers."