Saargummi restructuring now complete

ERJ staff report (DS)

Saarbrucken, Germany - The joint administrators of te Saargummi group said the restructuring of the SaarGummi group was completed on 6 June 2011, with the transfer of business to the Chinese state-owned Chongqing Light Industry & Textile Holding Group Co. Ltd.. (CQLT).

The administrators, Jean-Olivier Boghossian of Schultze & Braun and Udo Gröner from home & Müller, said CQLT guarantees the employment of approximately 740 permanent full-time employees at the main site Büschfeld for the next five years and invest at least € 15 million.

The SaarGummi Group is a leading global manufacturer of sealing systems and, recently generated with 4,400 employees worldwide and generated sales of 360 million euro. For about five years, SaarGummi and CQLT have operated a joint venture in China. On payment of the purchase price for the business and the subsidiaries of the Group of SaarGummi state-owned conglomerate took over from Chongqing on Monday, the entrepreneurial leadership of the automotive supplier.

Administrator Jean-Olivier Boghossian of Schultze & Braun expressed his satisfaction over the conclusion of the restructuring: "Four months after the opening we have been able to win with CQLT a financially strong strategic partner for SaarGummi that the continuity of the business at the main site Büschfeld as well as the survival of the whole group guarantees as a unit. I thank the staff for their perseverance and loyalty at this difficult time and the creditors for the trust and cooperation. "

SaarGummi Germany GmbH and the holding company SaarGummi GmbH in November 2010 filed for bankruptcy after a the main shareholder Odewald & Cie. withdrew financing.

All subsidiaries of SaarGummi in Luxembourg, Czech Republic, Spain, Holland, Slovakia, Russia, USA, Brazil, China and India have now passed to CQLT

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Press release from Schultze & Braun (German language)

Above Press release auto-transalted into English from German