The machine-tool manufacturer SHW based in Aalen, Germany, has declared bankruptcy despite having a healthy order book. The reason for this are the EU’s sanctions against Russia, said the provisional insolvency administrator Martin Mucha in Stuttgart.
“In 2013, SHW still achieved revenues of roughly 60 billion Euro,” said Mucha. “Then came the embargo on Russia in 2014, which caused revenues to fall to 33 million Euro by 2017.” While the company managed to pick up some new orders in China, they were unable to compensate for the losses in its Russia business so quickly, he added.
“SHW’s order books are full, with 50 million Euro of revenues possible in this year,” said Mucha. But therein lies the problem: the company is suffering from a lack of liquidity to purchase raw materials for its existing orders due to the loss of its Russia business, he said.
SHW Werkzeugmaschinen specializes in high-tech milling machines that are used for machining components for large diesel engines or turbines, among other things. The company operates service branches in China, India and the US.
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