DGH Group starts insolvency proceedings, more diecasters may follow - sources

German diecaster DGH Group has begun insolvency proceedings, sources close to the matter told Fastmarkets on Friday June 19.

Fastmarkets understands that the insolvency action pertains to three group companies - DGH Heidenau, DGH Hof and DGH ZIT - with appointed insolvency administrator Franz-Ludwig Danko currently considering potential restructuring options.
The company, headquartered in Donha, Germany, produces an estimated 70 million die-cast aluminium and magnesium automotive parts each year, supplying carmakers including BMW, Volkswagen, Porsche and Audi.
But with automotive demand unprecedentedly low amid the ongoing global Covid-19 pandemic, the secondary aluminium supply chain has almost ground to a halt, forcing many carmakers, diecasters and smelters to take dramatic measures to stay afloat.

Jaguar Land Rover, for example, announced that it would cut 1,100 jobs across...

Published

Amy Hinton

June 19, 2020

17:04 GMT

London