Fastmarkets understands the company, based in Hildesheim, Germany, began voluntary administration proceedings at Hildesheim District Court in a bid to restructure and reposition itself in what many participants consider will be a challenging post-coronavirus secondary aluminium market.
The news follows the announcement of fellow German diecaster DGH group’s insolvency proceedings
, which began on June 19 amid the global pandemic.
KSM employs approximately 2,350 people across Germany and the Czech Republic, posting a balance sheet of €360 million in 2019, before the virus hit.
But it is now expected that four of the company’s German production sites will be adversely affected by administrative proceedings, leaving approximately 1,800 employees affected by the bankruptcy.
“KSM… have announced a special ‘protective shield procedure,’ that...