The bankruptcy filing for KTM AG and two other companies of the motorcycle manufacturer from Mattighofen (Upper Austria) is expected in the coming hours at the Ried Regional Court, shaking 3,650 employees and an entire region. Board member Johannes Kopf of AMS Austria is also affected. He speaks of a “big blow”.
Since Tuesday afternoon it has been known that both KTM AG and KTM Components GmbH and KTM F&E GmbH will file for bankruptcy today, Friday – in particular, an application to open a restructuring procedure with its own management. This is a blow to the 3,650 employees who work in the three affected companies, as well as to many supply companies that are also dependent on KTM and are now forced to make significant cuts. Pure uncertainty!
“I don’t understand what happened”
“Many employees at KTM, but also people who live in Mattighofen and the surrounding area, for whom this company is so important, cannot understand what happened at all,” the board of AMS Austria said on Thursday evening in the ORF magazine ZIB 2 Head continues : “Last year the profit was paid out in the spring, in the summer the owner bought another company and now bankruptcy is being filed.”
The reduction of 300 production employees is fixed
Kopf was affected: “I would like to express not only our support for the people, but also my condolences. This is a big blow.” Behind the scenes, the wires between the employment agency and the state of Upper Austria have been live for days and different variants are being worked on to accommodate as many employees as possible. Because: KTM had already announced that it would cut approximately 300 production employees before the bankruptcy was announced. There will also be cuts in management, the extent of which has not yet been determined. In addition, there are many companies that are directly or indirectly dependent on the motorcycle manufacturer.
“Hopefully we will be able to place some of the employees,” said Kopf. Consideration is being given to setting up a foundation, which could provide further training for people who lose their jobs.
“You can’t put your head in the stands”
From KTM to Siemens, where the closure of the factory for the site with a focus on industrial power supply in Vienna was announced and also Schaeffler’s decision to close the factory in Berndorf (Lower Austria) – the reports have been overwhelming in recent days . “I’m worried myself, but you have to take countermeasures here; burying your head in the sand is not possible,” says Kopf.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
