Heinzel Group Announces Decision to Close Its Subsidiary, Raubling Papier in Germany
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Heinzel Group announced that it has made the difficult decision to close its subsidiary, Raubling Papier GmbH, in Germany, due to persistently difficult market conditions and challenging economic circumstances.
"This decision follows comprehensive discussions with the local works council, resulting in a successfully concluded social plan. More than half of the affected employees have already secured new employment, reflecting the effectiveness of the company's transition support efforts," Heinzel Group said in a press release.
In its financial review of 2023 published earlier this year in April, Heinzel Group indicated that the most likely outcome for Raubling Papier would be closure.
"[Raubling Papier] continues to be characterized by a persistently difficult market environment and challenging economic conditions in 2024, and the management of Raubling Papier has now decided to enter into discussions with the local works council about a possible discontinuation of operations to develop socially responsible solutions for the 165 employees potentially affected," the financial review stated.
Raubling Papier has two paper machines with the combined capacity to produce 210,000 tonnes per year of containerboard.
With the closure process now focused on the sale of assets, Heinzel is moving forward with the disposition of machinery and equipment.
"We are encouraged by the rapid transition of many of our employees to new positions and are now concentrating on the sale of Raubling Papier's assets," said Andreas Sailer, CEO of Raubling Papier. "This includes a range of high-quality machinery and equipment. Interested parties are invited to engage with us promptly as we navigate this phase."
