Turbulence in the energy market too big a hurdle for Baden Board

23 Dec 2021 − 

Production is being stopped and about 200 employees dismissed, investor process is to continue.

Financially troubled German cartonboard producer Baden Board has laid off a large part of its employees. The provisional insolvency administrator of the company, Marc Schmidt-Thieme, explained that despite good progress in the company's insolvency proceedings and strong support from customers, suppliers and employees, production cannot be maintained due to extremely high gas prices, therefore a "phase-out" must be initiated in the short term. When the insolvency proceedings are opened, which is expected on 1 January 2022, a large part of the workforce, around 200 employees, will also have to be made redundant, he explained. Around 80 employees will initially remain in the company as a liquidation team.

"We very much regret this tough step so close to Christmas. We have been on a good course until now. However, the continued extreme increase in energy prices is too much of a burden for us, so that we have to take urgent action as a result of economic and insolvency law requirements," the administrator explained. At currently around 184 € per megawatt hour, natural gas required for Baden Board's production processes is more expensive than ever before in Germany, and an end to this problematic price development is still not in sight, the statement continues.

However, the investor process for Baden Board is to continue. "There is still a lot of interest in investing in Baden Board and continuing the business operations," says Mr Schmidt-Thieme.

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