The Deutsche Steinzeug, a traditional German manufacturer of ceramic products, has filed for insolvency. Around 1000 jobs are at stake. The company plans a comprehensive restructuring to ensure its continued existence and preserve the workforce.
Deutsche Steinzeug is particularly known for its production of fine stoneware and tiles. The company with several locations is one of the established players in the German ceramics market. The economic challenges that led to insolvency are likely to be diverse: rising energy costs, weak construction demand and intense competitive pressure characterize the entire industry.
The insolvency is part of a series of consolidations in the German building materials sector. Recently, Etex sold its roof tile division Creaton to Terreal, a transaction that illustrates the consolidation wave in the European market. Other manufacturers are also struggling with structural problems, as the example of Steico in timber construction shows.
Deutsche Steinzeug's restructuring plans aim to maintain production while improving cost structures. Whether investors can be found or whether liquidation threatens remains open for now. For the approximately 1000 employees, insolvency initially means uncertainty, even though job preservation is a stated goal.
The company's regional importance is considerable. Deutsche Steinzeug is an important employer at several locations. A closure would have noticeable effects on the local economy and supply chains. The ceramic industry in Germany as a whole is under pressure: high production costs, cheap imports from Asia and stagnant construction activities are putting pressure on manufacturers.
For purchasers and planners, insolvency initially means no immediate supply shortages as long as production continues as part of the insolvency proceedings. In the long term, however, the product portfolio could change or the availability of individual assortments could be limited. Further developments depend largely on whether viable restructuring concepts and financing partners can be found.
Deutsche Steinzeug can be reached at www.deutsche-steinzeug.de. Further information on the insolvency proceedings and concrete restructuring measures are expected in the coming weeks.
