A German company that is more than 600 years old has declared bankruptcy

The ironworks survived, for example, the period of the Reformation, the Thirty Years’ War, two world wars, the division and unification of Germany…

The oldest company in Saxony is bankrupt. “Eisenwerk Earle” had to file for bankruptcy after more than six centuries of existence. As announced by the district court in Kemnica, bankruptcy proceedings have been initiated over the assets of this ironworks.

A meeting of the company’s key creditors is scheduled for May, and the current management will try to restructure the company together with the court administrator, reports the German “Focus”.

The steel plant, which employs 300 people and whose most important customers are from the automotive industry, produces, among other things, turbocharger housings and engine components for the automotive industry.

“Focus” states that the high costs of raw materials and energy are the main reason for the financial difficulties of “Eisenwerk Earl”.

In the latest annual report published by the Iron and Steel Industry for 2020/21. sales fell to 51.3 million euros. The loss amounted to two million euros, a year earlier it was as much as 3.6 million euros.

About 400 steel workers from six companies demonstrated last week in Riza, Saxony, due to the ever-increasing electricity prices, which the Metallurgical Industry Union considers difficult to monitor.

The oldest company in Saxony was first mentioned in historical documents in 1380. At the time of East Germany, “Eisenwerk Erla” produced cylinders for engines. In 1994, it took over the company “Schubert and Salzer” from Ingolstadt. Since June 2011, it has been owned by the Indian “Dinamatik Group”, reports RT Balkan.