Ruia Global Fasteners Declares Insolvency
2012-07-20 Class:European News
Ruia Schraubenbereich, the European subsidiary of Indian Riua Group, which acquired Acument Germany's production plants in February 2011, declared insolvency at the end of March this year.
Administrator Dr. Frank Kebekus of Düsseldorf insolvency practice Kebekus & Zimmermann was appointed.
Acument GmbH declared self-administered insolvency in 2009 following a 40 million euro loss as a result of the collapse of automotive demand following the financial crisis. Pre-crisis the Acument operation reported annual turnover of around 800 million euros. When Ruia acquired the Acument business it had around 130,000 square metres of production space at four plants in Beckingen, Neuwied, Neuss, Schrozberg and Cologne. It employed 1,400 people. It processed around 55,000 tonnes of metal annually producing more than 3.2 billion parts for the automotive industry, which included supplying VW, BMW, Daimler, MAN, TRW and Ford. 2010 turnover was expected to be in the order of 230 million euros.
Ruia acquired the Acument businesses with apparently very little actual cash investment - the group told Indian media at the time that its investment was no more than 4 million euros, with the deal primarily financed by a three years sellers' credit. Previously Draftex, another 2009 German Ruia acquisition servicing the automotive sector, was also declared insolvent.
The fastener business works council told the Saarbruecker Zeitung paper "the company had no problem with orders, the orders books were full". The insolvency it said was because Ruia did not have the money to invest in the operations.
At the time the insolvency was announced German financial media reported that worker's salaries would be paid until May. Dr. Kebekus was quoted as saying, in the light of the strong market position of the company, that he was optimistic about achieving a sale and protecting a significant number of jobs.