The Heilbronn-based mechanical engineering company Illig is no longer able to finance its growth from its own resources and has filed for insolvency under self-administration at Heilbronn Local Court. Customers should not feel any restrictions as a result of the restructuring process.
The long-established company intends to continue its equity and restructuring process as part of a self-administered reorganisation procedure. The self-administration will be led by the existing management and supported by the lawyer and insolvency administrator Jochen Sedlitz from the Stuttgart law firm Grupp Brugger. The restructuring process should not lead to any restrictions for customers. Illig can and will continue to work on projects and provide its services. The company's presence at key global market platforms such as ChinaPlas 2024 and NPE in the USA will continue as planned in order to present ILLIG products and innovations to customers and interested parties.
Decisive external factors
Illig continues to be a global technology driver and is regarded as a strong and internationally broad-based quality brand in the development and manufacture of high-performance machines and tools for packaging and thermoforming. The following two factors are particularly important for the current business development: Illig - like many medium-sized companies - is being hit hard by the current economic situation: Extremely increased costs due to inflation, interest rates and energy prices as well as the aftermath of the coronavirus pandemic and the consequences of international conflicts.
Changing customer requirements for more sustainable and flexible solutions stand in the way of increasing, internationally noticeable investment weakness in the area of thermoforming and packaging machines on the other hand. This is primarily the result of potential customers' unwillingness to invest due to the interest rate developments of the last two years and other political conditions at both national and international level. For Illig, this means, The company will have to invest massively in technology and innovation, but will not yet be able to compensate for this on the market side. As a result, the company lacks the financial freedom it needs to react to these market changes on its own.
Last year, Illig therefore initiated an investor process to enable growth and innovation financing in the changing markets. The shareholders had given the green light for this growth strategy and fully supported the management's plans in a spirit of partnership. Several strategic partners as well as financial investors have expressed interest and submitted initial offers, but have not yet concluded an agreement due to the overall economic situation. Therefore the investor process must be supported by judicial reorganisation instruments. and continued in self-administration as part of the reorganisation process.
Good starting conditions for equity and restructuring process
Illig had already repositioned itself with a comprehensive strategy programme in October 2022. Among other things, the programme focuses on a clearer production and supply chain strategy, an innovative technology focus and more intensive market development. Because Speed, innovation and growth in international markets are the decisive key factors for the future success of the company. The shareholders and the Illig management are certain that packaging will continue to be an indispensable component of branded products in the future and will fulfil even more functions, particularly in the area of product protection. At the same time increasing demands on the sustainability of products. Illig aims to serve these global megatrends with its existing expertise, technologies and services, as well as setting its own innovative trends for the packaging technologies of the future.
To realise this, we now need partners from the market. The starting conditions for this investor process are good. Illig is a strong global brand and the installed base, i.e. the number of machines and services in operation, is high. with over 10,000, one of the world's largest in the field of mechanical engineering for packaging and thermoforming. For the industry Important innovations shortly before market launchIllig has developed and patented a new packaging technology for non-plastic packaging, which is already meeting with great customer interest and will be launched on the market next year. The capacities for this are available: With its established new plant in Romania with good expansion options, Illig is in a position to respond extremely quickly to a resurgence in demand.
Source: Illig
