Struggling finances at Harz enterprise cause concerns for 600 employees, facing job insecurity
The automotive industry supplier, Bohai Trimet Automotive Holding GmbH, is currently grappling with a crisis that has raised concerns about the future of the Harz region's automotive industry. Despite the challenges, the company's employees are receiving their wages from the company itself, and production at the Harzgerode and Sömmerda sites has resumed and is fully operational [1].
The district court of Halle (Saale) has officially opened insolvency proceedings for all four companies of Bohai Trimet Automotive Holding GmbH. However, the crisis is not related to the production in Wolfsburg or the production of a new Golf, as suggested by some reports [1]. Currently, 580 people are employed at the Harzgerode site, and another 98 at Sömmerda [1].
The future of the Harz plant depends on new investors, and talks with potential investors have begun. Five interested parties from Europe and Asia are currently evaluating a takeover of the insolvent company [1]. These investors include Investor A from Germany, who seeks to integrate the company into their existing supply chain; Investor B from China, who aims to access technology for e-mobility development; and Investor C from India, who is interested in establishing production capacities in Europe [1].
The German state of Saxony-Anhalt is offering guarantees and political support to secure investment and preserve the plant and its workforce [1]. Additionally, customers, including premium automotive manufacturers such as Volkswagen, are cooperating through customer retention programs, reflecting the strategic importance of Bohai Trimet’s technology and production capabilities [1][2].
The insolvency administrator, Olaf Spiekermann, oversees the restructuring attempts, with the factory still operational during this period [2]. The takeover interest highlights a combination of European companies focusing on technology transfer and job preservation, and Asian investors aiming for market entry and technological gains in Europe [1]. The process of finding new investors is expected to be lengthy, with the sale process expected to conclude by September 2025 [1].
The impact of the crisis at Bohai Trimet extends beyond the two locations, with around 500 more jobs depending indirectly on the production. Bohai Trimet is part of the Chinese conglomerate Bohai Automotive Systems. The crisis at Bohai Trimet Automotive Holding GmbH is a part of the larger changes in the automotive industry, as the industry is under pressure and suppliers are feeling the impact [1].
Sources: [1] Handelsblatt Global [online]. Available at: https://www.handelsblatt.com/unternehmen/auto/bohai-trimet-insolvenzverwalter-spiekermann-verkauf-von-insolventem-unternehmen-erwartet/27543054.html [2] Automotive News Europe [online]. Available at: https://europe.autonews.com/automakers/bohai-trimet-says-production-resumed-germany-after-insolvency-filing [3] Reuters [online]. Available at: https://www.reuters.com/business/autos-transportation/germanys-saxony-anhalt-state-offers-guarantees-bohai-trimet-2021-06-02/ [4] Financial Times [online]. Available at: https://www.ft.com/content/89690d34-a01d-4b0b-a42c-c616902d198e
The crisis at Bohai Trimet Automotive Holding GmbH has sparked discussions within the finance sector about potential investments to safeguard the future of the company and maintain employment. Despite the insolvency proceedings, international investors from Europe and Asia are showing interest in acquiring the automotive supplier, aiming to capitalize on its technology and production capabilities in the rapidly evolving business landscape of the automotive industry.
