Moventas’ subsidiaries to file for corporate restructuring
The global recession and prolonged financial crisis significantly impacted the wind power industry supply chain. The Finnish wind power and industrial gear manufacturing and maintenance company Moventas is to file its operational subsidiaries, Moventas Wind Oy and Moventas Santasalo Oy, for corporate restructuring after unsuccessful financing negotiations.
Jukka Jäämaa , President and CEO of Moventas, commented: “Our focus now is to find a solution within the corporate restructuring framework to return the business to a sound financial footing. I am confident that today’s filing is in the best interests of our clients and personnel. Moventas has a solid market position on the industrial gear side, strongly growing service operations and good position and top expertise on the wind gear market that is just about to pick up again.”
Moventas was hit hard by the financial crisis that started in 2008. The wind gear business, in particular, suffered during the downturn. Heavy investments in the new manufacturing facilities also burdened the business, and negotiations related to financing the further development of the company have been ongoing since 2010. As the lenders and owners during the last weeks’ negotiations did not find a solution that all parties could commit to, Moventas’ subsidiaries Moventas Wind Oy and Moventas Santasalo Oy will file for corporate restructuring. Other subsidiaries will continue their operations normally. As part of the reorganization, the administrative parent company of Moventas has filed for bankruptcy and hence, the necessary internal support services will be transferred to subsidiaries. All the arrangements are made in co-operation with the main lenders. By filing for corporate restructuring, the subsidiaries are seeking a solution where they can continue their business. The news from the markets are promising.
“The message from our customers today, in India and China, for example, is very optimistic. However, the past couple of years have proved tough and we must focus our efforts on further improving cost efficiency across the business. We have over-capacity in Europe, whereas our customer base has now shifted largely towards growth markets, such as North America and Asia. We need to follow that development and continue adapting our operations and resources accordingly,” said Jukka Jäämaa.
Jukka Jäämaa, CEO
Tel. +358 50 526 7665
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