Two well-known automotive suppliers are bankrupt: more than 1,000 jobs are on the verge of extinction

Despite intensive efforts and financial commitments from the public sector, the foundry specialist Bohai is on the verge of collapse. Insolvency administrator Olaf Spiekermann had negotiated with three potential investors, but no agreement was reached – even though the state of Saxony-Anhalt, the city of Harzgerode and other institutions had submitted binding offers of support, according to the dpa agency.

The decisive blow came at the end of last week: The main client announced that essential parts that had previously been manufactured in Harzgerode and Sömmerda in Thuringia would be outsourced elsewhere starting in the fall. “Without this work, both locations cannot survive,” explained Spiekermann. The final decision on the future of the company with its almost 700 employees is expected to be made by the four creditor committees at the end of next week. In addition, around 650 additional jobs at economically affiliated companies in the region are at risk.

Schlote Group loses orders

At the same time, the situation at the Schlote Group is getting worse. According to the insolvency administrator, the customers have announced that they will commission other suppliers in the future. Around 330 employees in the GAW Wernigerode, Schlote Harzgerode and Schlote Brandenburg plants are affected. The factory in Brandenburg an der Havel is already shutting down production and is expected to close in the fall.

Millions worth of support in vain

The financial commitment of the clients is remarkable: at both Bohai and Schlote, customers had supported the continuation of operations with double-digit million amounts in order to enable rescue negotiations for a year. However, no viable solution could be found.

The threatened closure of both companies marks a bitter setback for the Harz industrial region and underlines the ongoing structural crisis in the German automotive supply industry. The final decision on the future of the Schlote Group is still pending and must also be approved by the creditors’ committee.