Manroland Sheetfed enters protective insolvency

The Offenbach-headquartered firm, which traces its printing heritage back to 1911, is initiating the structural reorientation necessary to return the business to profitability, albeit on a "much reduced scale." The process allows the current management, led by CEO Mirko Kern, to retain control of operations while restructuring plans are implemented under the supervision of external experts.

Langley Holdings had flagged the severity of the situation last month, revealing that Manroland Sheetfed recorded a loss of USD 50.15-m in the last financial year. The broader Print Technologies division, which includes Manroland Sheetfed, saw sales fall by 13.4% to USD 314.62-m. At the end of the year, the division employed 1,615 people, a significant portion of whom are based in Germany.

CEO Mirko Kern commented on the unavoidable consequences of the restructuring, stating, "It is regrettable that a great many jobs will be lost, but I call upon the workers council and the unions to co-operate with what we and restructuring experts have concluded are the necessary measures to arrive at a viable business and preserve the remaining positions.” Currently, Manroland Sheetfed employs 750 people in Germany and a further 600 internationally.

Corporate restructuring lawyer Professor Dr Peter Fissenewert of BUSE and restructuring specialist Arndt Geiwitz of SGP Schneider Geiwitz have been appointed as general representatives to support management. Geiwitz expressed a cautious optimism, noting, "I see Manroland Sheetfed has a viable core business. However, we will have to implement drastic and far-reaching measures. Then the restructuring has a chance of success."

For Langley Holdings, a diverse engineering group with USD 1.56-bn in turnover, the decision to support the restructuring is also driven by a commitment to the substantial installed base of Manroland presses. Chairman and owner Tony Langley had previously affirmed that customer support would be maintained regardless of the chosen solution. The parent group is expected to utilise the large Offenbach production facility for its booming Power Solutions wing.

Langley acquired the Manroland sheetfed operations out of administration in 2012. The current protected insolvency procedure is expected to last approximately six months.