NEWS

Management and employees at loggerheads over future of Whitesell Germany

A series of German media stories have revealed a deep schism between the IG Metal Union and Whitesell – the US group that purchased Ruia Global Fasteners (RGF) from administration in December 2013.

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GF was previously Bauer & Schaurte, a 140-year-old fastener producer that became Acument GmbH. The company went into insolvency in August 2009 facing a 40 million euro loss as a result of the collapse of

automotive demand during the financial crisis. In February 2011 the Indian Ruia Group acquired the business for an undisclosed figure, renaming it Ruia Global Fasteners AG. In 2012 RGF returned to insolvency amidst accusations from its works council that Ruia had not invested in its operations despite the company having a full order book. Whitesell is a privately held US family group, established in 1970, which has grown by acquisition to become a major manufacturer and distributor of metal formed and C-Class parts to automotive OEMs and tier suppliers, as well as to a wide spectrum of other engineered products markets. At the time of the Whitesell acquisition IG Metall was publicly

sceptical about whether the company would receive the investment it said was needed and vocal about the risks to employment. A majority of employees signed a statement rejecting Whitesell as the new owner. The company has four plants in Beckingen, Neuwied, Neuss, and Schrozberg, employing around 1,300 people. At the beginning of June the Union organised a walk out and public rally in protest about feared job cuts. In a vociferous statement on its website IG Metall accused Whitesell of a series of failings, including lack of investment, loss of major contracts and "blackmailing" customers with damaging price increases and delivery conditions. The statement says: "The company is in massive danger and 1,300 jobs are at extreme risk." The Union concludes that the situation is worse than it predicted at the end of 2013 and demanded the withdrawal of Whitesell and a new "reputable owner". On 25th

June Whitesell issued a statement, published in full by

Hohenloher Tagblatt, which refuted the Union's claims. Whitesell maintains that major automotive accounts had made alternative sourcing arrangements during the second insolvency period and before its acquisition of the business. Other contracts, when analysed, were found to be at loss making prices necessitating the company to apply major price increases, many of which were not accepted by the customers. It also stated that the workforce uncertainty had undermined supplier and customer confidence, complicating the situation for Whitesell Germany. Whitesell said that despite enormous difficulties new long-term

contracts have been concluded with large customers and concluded: "We are willing to invest in this company. We want to make it a world-class automotive supplier. Restructuring will unfortunately be difficult but it is the only way to save many jobs."

Acquisition expands Norm Civata’s range and capacity

Turkey’s largest fastener producer, Norm Group, acquired Italian screw manufacturer – Derk SpA – at the beginning of 2014 and has now relocated production to its new facility at Manisa, Salihli – approximately 100km east of the Group’s other production operations in Izmir.

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orm decided to make the acquisition in order to diversify its production range and further develop its capability to meet customers’ requirements. Based previously in Assago,

Milan, Derk specialised in small screws for the automotive, home appliance and electronics, lighting and medical sectors. Throughout the transitional process Norm has maintained close contact with Derk’s customers and is already supplying their requirements. In addition to expanding its customer base Norm Group has gained know-how in small screw and stainless steel production – enhancing its already extensive technical and production capabilities. The acquisition has also brought Norm a substantially

upgraded machine park. The Group has transferred 27 cold heading machines, 18 thread rollers, a heat treatment furnace and 3 self-drilling screw machines, altogether representing some 4,000 tonnes annual capacity. The equipment is currently being commissioned and is expected to be in full production in July. Additionally Norm has relocated three packaging machines and storage systems with 2,200 pallet capacity, as well as the necessary tooling. Norm chairman, Mr Fatih Uysal, commented: “The

product groups Derk previously manufactured were the ones our existing customers were already purchasing. For a long time we have looked for the opportunity to enter these market segments. Acquisition of a technically well-regarded company with a strongly established customer portfolio presented a major advantage. Our common customers, who already have high levels of confidence in Norm Civata’s quality and service, have been quick to ask us to supply parts to them. We expect these sales to contribute approximately 4,000 tonnes additional turnover for the Norm Group.” The Norm Group currently has 1,250 employees and the addition of its new plant in Manisa, has taken the company’s annual production capacity to 85,000 tonnes in bolts, nuts and screws.

www.norm-fasteners.com.tr 14 Fastener + Fixing Magazine • Issue 88 July 2014