The spending cuts of plastics processors have struck another machinery maker, namely Germany-based Illig (Heilbronn; www.illig.com). The manufacturer of thermoforming and packaging machines has filed for insolvency under self-administration.

As a result, the Heilbronn local court appointed solicitor Tibor Braun (Stuttgart; www.rae-ibk.de) as provisional administrator. However, restructuring expert Jochen Sedlitz from the Stuttgart office of the German law firm Grub Brugger (Frankfurt; www.grub-brugger.de) will be the chief representative. According to media reports, Illig employs around 515 people in Heilbronn and its sales volume was most recently around EUR 100 mn. 

Illig emphasised that the restructuring process should not lead to any restrictions for customers. Projects and services will continue, and the company also intends to present its products at Chinaplas 2024 and the US NPE Plastics Show. 

The company said the reason for its application for insolvency in self-administration lies in the reduced willingness to invest on the part of customers, who are cutting back on spending in view of the sluggish economy and high interest rates, as well as in the need for capital for investments in order to fulfil customer requirements with regard to sustainability aspects.

It had therefore already initiated the search for an investor in 2023, and anticipates good prospects for the further investor process from the foreseeable market launch of technologies for non-plastic packaging.

Times are hard for machine manufacturers at the moment. In Germany, they ranked first in insolvencies of larger companies with a sales volume of more than EUR 20 mn last year. Among them were blow moulding machine manufacturer Kautex, which has since been taken over by Chinese investor Jwell, and polyurethane machine specialist Frimo.

Related: Figures showing comparatively fewer bankruptcies in German plastics sector called misleading

Manufacturers of injection moulding machines are also struggling: KraussMaffei is expecting heavy losses for 2023, Engel is cutting jobs, and Arburg announced the introduction of short-time working in autumn.