German panel products giant Hornitex Werke Gebr has filed for bankruptcy protection after failing to secure a rescue package from bankers.
The move last Friday followed several days of abortive talks with creditors in a bid to hammer out interim funding for the company hit by a slowdown in its home market.
Hornitex, which is still run and owned by the founding Kunnemeyer family, is continuing production at its two MDF lines, five particleboard lines and its semi-dry fibreboard line, located at Horn-Bad, Nidda, Meinberg, Beeskow and Duisberg.
Friday’s shock announcement comes only weeks after Hornitex disclosed that sales rose by 6% during the first four months of the year. Exports increased by 14% over the same period last year.
Hornitex (UK) sales director Stephen Willis said: ‘Business has been tough – as for everyone – but exports were holding up well for the company. The home market was not so successful, I can only assume.’
Mr Willis added that Hornitex’s US$46m investment in a power station at Horn could not have helped its financial predicament.
Hornitex (UK) Ltd has assured its UK customers that it is trading as normal.
‘Material is still being made and we are continuing to bring it in. Hopefully it will not be too long before a rescue plan is put in place,’ said Mr Willis.
