No closure for manroland sites in sale

Negotiations are wrapping up for the insolvent German manufacturer. With two strong bidders at the table the company’s three plants are likely to be safe for continued press production.

US-based Platinum Equity has been identified as one of the two bidders interested in rescuing all three press production sites in Augsburg, Offenbach, and Plauen. PE recently bought publishing software company Quark, reviving the media tool for a comeback.

With PE’s US$127 million (A$123m) bid in play for the beleaguered manufacturer, manroland’s survival could be decided tomorrow at the creditors’ committee meeting. It is uncertain who the second whole-of-company bidder is, though Koenig & Bauer AG expressed interest in its insolvent rival in December.

Werner Schneider, manroland AG’s insolvency administrator, says a sale would permit the continued existence of the company’s three sites based on the current status of negotiations. He said talks with the individual bidders were complex and subject to intense time constraints.

“I am working under the assumption that we will be able to reach an agreement with the creditors’ representatives and the banks providing collateral on Wednesday afternoon,” he says.

Schneider adds that while negotiations have not yet been finalized for the final downsizing numbers, job preservation is a priority. The IG Metall trade union drew the ire of manroland workers after cancelling an all-staff demonstration in Munich on Monday, a decision made behind the employees’ backs. Union confidence is flagging with jobs lost in the hundreds across all three plants.

Former Manroland owners MAN Group and Allianz have pledged €24m (A$29.5m) to finance redundancy payments and alternative employment schemes.