Three Pollmann companies file for insolvency, affecting 500 employees

Three companies in the Pollmann automotive supplier group have sought restructuring proceedings in Austria, putting 500 jobs under scrutiny while the company says production will continue.

The proceedings concern Pollmann International GmbH, Pollmann Austria GmbH and Pollmann Werkzeugbau GmbH, all headquartered in Karlstein an der Thaya in Lower Austria. The companies reported combined debt of 74 million euros.

Pollmann said it aims to keep the businesses operating and does not plan a “mass layoff.” It wants to retain most employees and said talks with investors had progressed substantially. The works council and the Austrian Chamber of Labour have been closely involved because of the number of employees affected.

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No mass layoff is planned.

The restructuring forms part of a broader reorganization that has already included a change at the top of the company, the consolidation and relocation of a site to Karlstein, and the sale of properties not needed for operations. The company said restructuring on this scale was difficult to achieve independently.

Pollmann attributed the need for restructuring to structural changes in the automotive industry, describing a lasting shift that is affecting many European suppliers. Its subsidiaries in the Czech Republic, Mexico and China, as well as Maxxom Automation GmbH, are not covered by the Austrian proceedings. Insolvency specialist Andrea Fruhstorfer will advise the companies during the process.

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For a company of this size, a transformation and restructuring of this scale is difficult to implement independently, which is why initiating the restructuring proceedings was unavoidable.