The industry has been warning about the consequences of the energy crisis for weeks: Now there is a first prominent victim: the traditional Styrian company Christof Industries has requested a restructuring process for its Austrian subsidiary! 350 employees are affected, the business continues.
As the company itself announced on Friday morning, a reorganization procedure has been requested. “The reasons are the far-reaching consequences of the corona pandemic and the Russia/Ukraine crisis. Major delays in delivery and huge price increases of sometimes 200 to 300 percent for raw materials as well as energy and transport cannot be calculated in current projects and have a huge impact on profits and liquidity.
In addition, there were huge payment delays from customers, “which could not even be compensated by the operationally very good business with full order books”. Payment arrears and unpaid additional cost claims from just two projects have already reached double-digit million.
350 employees at four locations
The subsidiary Christof Industries Austria with 350 employees at the locations Wels, Graz, Vienna and Werndorf is particularly affected by the bankruptcy. In their own words, the management is nevertheless optimistic about the future. Much has been invested in research and development in recent years, especially in sustainable technologies for decarbonisation. The entire group of companies “takes a leading position in the industry”.
“This move by Christof Industries Austria GmbH was anything but easy for us, but it is necessary to secure the future and especially jobs. We are well positioned for the future. Instead of profit distributions, we have made huge investments in research and development for sustainable, environmentally friendly technologies for decarbonisation,” says Johann Christof, CEO of the Christof Industries group, as follows.
Source: Krone
I am Ida Scott, a journalist and content author with a passion for uncovering the truth. I have been writing professionally for Today Times Live since 2020 and specialize in political news. My career began when I was just 17; I had already developed a knack for research and an eye for detail which made me stand out from my peers.
