After filing for insolvency earlier this year, the automotive and e-bike industry supplier Castwerk, based in Hesse, is now facing permanent closure, marking the end of its operations.
The Hesse-based supplier Castwerk, known for producing lightweight magnesium components for the automotive and e-bike industries, has been forced to cease operations. According to the newspaper HNA, the company’s insolvency procedure, initiated in March, has failed, and the closure is now inevitable. The insolvency administrator, Dr. Michael Lojowsky, confirmed that efforts to save the company had been unsuccessful.
Despite generating a revenue of €23 million in 2023, the company could not secure a future. Castwerk’s 140 employees have been notified of their termination effective October 31. The company is now working with the Federal Employment Agency to find socially acceptable solutions for the affected workers.
Failed rescue efforts and historical context
Initially, some of Castwerk’s clients attempted to support the company, seeking to mitigate their own potential losses. However, they eventually turned to alternative suppliers. The search for an investor to rescue Castwerk also proved fruitless, further tightening the company’s order situation.
Castwerk has a long history, originating from the Hettich Group, which started with zinc casting in 1978. The company expanded into magnesium die casting in 1998 and relocated its production to Frankenberg in 2015. Two years ago, Castwerk Technologies GmbH was established as part of Niemeyer Investment and private investor Sierra Zulu, but despite these developments, the company could not overcome its financial difficulties.
