The ADVANSA Group announces an administration procedure for its production unit ADVANSA Manufacturing GmbH
The ADVANSA Group, a leading polyester fibre supplier located in Hamm, Germany announces an administration procedure for its production unit ADVANSA Manufacturing GmbH.
The company ADVANSA Manufacturing GmbH, located in Hamm, Germany, has today, submitted an application for the opening of insolvency proceedings to the local court of Dortmund. The local court approved the application and appointed attorney Mr. Holger Rhode from the law firm Görg as provisional administrator. The business will be continued by the ADVANSA management with the support of the preliminary administrator.
Apart from ADVANSA Manufacturing GmbH, the other companies of the ADVANSA Group based in Hamm are not involved in the administration procedure, which has no immediate influence on their normal business operations which are also continuing without restrictions.
The reasons for insolvency of ADVANSA Manufacturing GmbH are several, related to the post-pandemic economy and the war in Ukraine. The administration procedure became necessary after energy prices and raw materials had risen significantly which had a negative impact on the production cost, margins and ultimately the liquidity of ADVANSA Manufacturing GmbH. In addition, lower market demand in this environment put significant financial strain on the company´s margins.
The company management commented: "Under the current circumstances, it is currently not possible to produce polyester fibres on an economic basis. Despite the many efforts and contributions of the workforce and management, it has not been possible to compensate for these challenges outside of the opportunities opened up by insolvency.
We would like to thank all employees for their great commitment and support so far. We are confident that the insolvency proceedings can lead to restructuring opportunities and a better outcome for the plant and the employees.”
As part of the ADVANSA Group, ADVANSA Manufacturing GmbH is a mid-sized company of the chemical industry and a leading German fibre manufacturer. ADVANSA Manufacturing GmbH has approximately 100 employees and generated an annual turnover of about 45 million Euros in 2021. The company was purchased by Sverige Investment Fund 3 years ago and is an affiliate of APF (Asia Pacific Fibers) in Indonesia.