Asset deal successfully completed
On 31.07.2020, Kurtz GmbH sold the prefabrication of the machine factory in Wiebelbach. The areas “sawing”, “welding”, “machining” and “coating” are affected. Despite the difficult circumstances of the Corona crisis, the Management of Kurtz Ersa succeeded in finding a buyer with many years of experience in the field of contract manufacturing in Ralf Reich, Managing Director and owner of the newly founded company IZW Innovative Zerspanungstechnik Wiebelbach GmbH. The partial transfer of business (closing) took place on 31.07.2020 within the framework of an asset deal, the property remains in the ownership of Kurtz Ersa.
Mr. Reich has been active in the field of machining technology for many years, has been working as a so-called extended workbench for Kurtz Ersa for quite some time and has an excellent network in the industry. The takeover of the mechanical production of Kurtz Ersa provides the opportunity for his previous company, which is based in Wetzlar, to expand further. More extensive orders can be processed in Wiebelbach, the new headquarters of his company. In particular the possibility of taking over the highly qualified employees was a decisive factor for Reich.
In view of the existing machinery, the know-how of the employees and the promises to be able to continue to manufacture a large part of the current in-house production parts for Kurtz Ersa on site, both sides see great opportunities to expand the contract manufacturing business in the long term. Not least because IZW Managing Director Reich brings along his own orders for contract manufacturing. Uwe Rothaug, Managing Director of Kurtz GmbH, says: “We are pleased to have found a buyer in Ralf Reich, who will fully utilize and further expand the business operations in Wiebelbach and contribute his high level of expertise in mechanical processing.”
For Kurtz GmbH the sale also brings important advantages: The service spectrum of mechanical production, which starts with welding and extends to mechanical processing and surface finishing, will remain available to Kurtz GmbH customers and will even be expanded by IZW. The flexibility on site, which is indispensable in the business environment, will thus be maintained. All in all, Kurtz Ersa is consistently pursuing its strategy towards engineering with this step. The former business field “Metal Components”, consisting of several foundries, a sheet metal production and a contract manufacturing, was still the largest pillar ten years ago. In the meantime, the transformation to a pure mechanical engineering company with a high level of process competence in the areas of Electronics Production Equipment, Moulding Machines and Automation has formed the basis for an ambitious and sustainable growth of Kurtz Ersa.
Restructuring of Kurtz GmbH completed
The sale of the prefabrication facility was preceded by an extensive restructuring of Kurtz GmbH. The upheavals in drive technology in the automotive industry, the environmental debate on the subject of plastic packaging and new competitors from the Far East required the company structure to be adjusted to a sustainably lower level. In the future, Kurtz will focus on mechanical and plant engineering in the application areas “Automotive” and “Protective Solutions”. The addition of a new business area is currently being planned.
Current business expectations due to the pandemic
The Kurtz Ersa Group, like the entire industry, is considerably affected by the Corona pandemic. A sales slump in the order of 50 million Euro is expected, which corresponds to approximately 20 percent. Business is expected to normalise in the third quarter of 2021. The period until then is to be bridged by massive savings measures at the level of material costs and extensive use of short-time working. No redundancies are planned due to the pandemic.