Pipeline Shutdown at Maxhütte Affects 300 Employees

The Maxhütte pipe mill in Sulzbach-Rosenberg, Bavaria, has announced its permanent closure following another insolvency procedure in 2022. The closure will result in the release of around 300 employees, who will be notified after negotiations with the works council.

The Maxhütte pipe mill was once part of the historic Maxhütte steelworks, which employed thousands of people and had more than 150 years of steel tradition before its closure in 2002. The steelworks was separated from the pipe mill in 2002 and restructured, allowing the pipe mill to continue operating.

Despite attempts by the Bavarian state government, including co-ownership and an investment of around 250 million euros, Maxhütte steelworks was unable to be saved. The main obstacle in finding an investor for the Maxhütte pipe mill was the non-alignment of the owner's expectations with the takeover interests' price expectations.

Efforts to find an investor for the pipe mill were unsuccessful, and it was ultimately the insolvency administrator who announced the closure. The property and facilities of the pipe mill did not belong to the insolvent company, and there is no information available about the name of the investor who found the pipe mill in 2022.

Negotiations with the works council are ongoing to discuss a social plan, which will aim to provide support to the affected employees during this difficult time.

The Maxhütte pipe mill has a long history of insolvencies prior to its closure, and the latest insolvency procedure in 2022 was no exception. Despite securing an investor, the pipe mill was unable to avoid permanent closure.

The closure of the Maxhütte pipe mill marks the end of an era for the steel industry in Bavaria, and the affected employees will be hoping for a brighter future as they navigate the challenges ahead.