SaarGummi deal may fall through

ERJ staff report (DS)

Büschfeld / Losheim, Germany -- Following a meeting of the works council at SaarGummi's Büschfeld factory, the deal by Chinese company Chinese Chongqing Light Industry & Textile Holding Group Co. Ltd (CQLT) to rescue the failing group may fall through.

The insolvency administrator Jean-Olivier Boghossian of Schultze & Braun said he was very surprised at the outcome. During negotiations CQLT has promised to invest at least 11 million euros inthe Buschfeld site and to retain up to 783 of the permanent jobs at the plant.

Boghossian said the decision of the Büschfeld works council may also threaten the rescue of the Losheim site. He said the Works Council is not seeing realirty and their decision to walk away could make their situationeven worse.

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Press release from Schultze & Braun (German language)

Above Press release Auto-translated into English from German