The signs are pointing towards a fresh start and optimism
The Kremsmüller Group is going through turbulent times at the moment. Although Kremsmüller Industrieanlagenbau KG and Industrieservice KG are currently undergoing restructuring, the signs are optimistic.
Dr. Martin Stossier, restructuring administrator of Kremsmüller Industrieanlagenbau KG comments: "The company has prepared the restructuring process well. The positive assessment by KPMG Advisory GmbH regarding the continuation of operations is comprehensible. The new management, headed by Christoph Sandner and Matthias Gattinger, is highly motivated, deeply committed to the reorganisation and is professional in its approach. From today's perspective, everything suggests that the restructuring will be successful".
Management and the proprietor family have collaborated with Bank Austria to provide financing for a restructuring plan that allows all parties involved to look to the future with confidence and optimism. The present restructuring and medium-term plan is sound and comprehensible. The overall financing plan for the future rests on solid foundations. In addition, there have been encouraging signals of support and cooperation from many other quarters: from employees and suppliers as well as from numerous customers.
This is representative of the very positive feedback we have received over the past few days:
"Kremsmüller is Andritz Hydro's partner of choice. We have successfully implemented projects together and stand by our commitment to cooperation. Kremsmüller will continue to be considered in any tenders launched". - Helmut Friedl, Vice-President Andritz Hydro.
However - and this should not be concealed - personnel measures will be implemented due to the closure of the process technology subdivision of Kremsmüller Industrieanlagenbau KG and the current under-utilisation of capacity caused by the corona crisis. At present, it is not possible to provide concrete figures. However, talks are currently in full swing with customers on existing orders and projects, not least with a view to deploying as many employees as possible in other areas.
Focusing on core competencies
What is certain to date: the Process Technology Division will be closed.
From today's perspective, management and owners are assuming that the company will be remodelled, and will lay the foundations for future success by pursuing a "NEW KREMSMÜLLER" strategy. The company will concentrate on its traditional core competencies:
Electrical, measurement and control technology
Pipeline and plant construction.
The primary reason for the restructuring procedures: a major contract in the Vienna area
The contract originally worth € 22.5 million had been running since 2018. However, the engineering costs increased exponentially and in hindsight exceeded the company's financial means, as is now acknowledged.
According to associate Gregor Kremsmüller, the company had been too gullible and trusting when approaching this project. Moreover, independent experts had confirmed that the risks associated with the project were not really transparent, not least due to the highly complex contractual situation. For this reason, the initiation of legal restructuring proceedings proved to be the only means of getting the problem under control.
Press contact: Michael Obermeyr, Managing Associate
REICHLUNDPARTNER Public Relations email@example.com
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