It has been widely reported in Germany that AVIR Guß Holding GmbH has acquired the business operations of Neue Halberg Guss GmbH together with all the major assets. The deal lifts the threat of job losses for the time being and was structured through AVIR’s affiliated companies Gußwerke Saarbrücken GmbH and Gußwerke Leipzig GmbH. The transaction is still subject to closing conditions, which should be fulfilled soon. The parties agreed not to disclose the purchase price.

Neue Halberg-Guss GmbH manufactures engine blocks, camshafts and cylinder heads. The company’s clientele includes Volkswagen, Daimler, Opel, BMW, Deutz, Scania, Iveco, and Perkins. Neue Halberg-Guss GmbH was incorporated in 2011 and is based in Saarbrücken, Germany with an additional office in Leipzig, Germany.

Shortly after taking over early in 2018 the Bosnian Prevent Group of the Hastor family began disputes with major customers. It is said they fought bitterly with the VW Group for delivery terms and as a result lost orders. Even in South Africa there were disruptions at its subsidiary Atlantis Foundries.

Only a few months after the takeover, the Prevent Group announced that it would close the Leipzig plant, which has 700 employees, by the end of 2019. In addition, they announced that several hundred jobs were to be cut at the other plant in Saarbrücken. After failed negotiations with the union IG Metall the entire workforce went on strike for over 48 days.

After the acquisition by investor group AVIR Guß Holding, the two foundries will be named Gusswerke Saarbrücken GmbH and Gusswerke Leipzig GmbH. The sale opens up the possibility for a new beginning, said Bernd Kruppa, a representative of IG Metall Leipzig.

The acquisition by AVIR Guß Holding was implemented through a RIVA structure, which has already proven to be a suitable stabilisation mechanism in other crisis situations.

Dr. Thomas Meichsner (CRO) and Michael Capitain (CFO) will take over the operative management. Both managing directors have extensive experience in the automotive industry.

Following the takeover, AVIR Guß Holding with its subsidiaries Gußwerke Saarbrücken and Gußwerke Leipzig 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.

With the new management, the new owner says they will initially ensure the immediate stabilisation and financing of the ongoing business operations. In the medium term, the existing investment backlog will be eliminated and the necessary maintenance investments carried out.