Update: Illig is being acquired by Orlando Capital; business will continue, but 200 employees will be cut. Read more.
Thermoforming machinery manufacturer Illig has entered insolvency proceedings in self-administration, the equivalent of Chapter 11 bankruptcy under U.S. law.
In a press release, the Heilbronn, Germany-based company said it did not expect customers to be affected, the existing management team will remain in place and Illig will still have a presence at NPE2024 and Chinaplas.
The company cited external factors for its financial struggles, including inflation, interest rates and energy prices, along with lingering effects of the pandemic, international conflicts and political situations.
“Changing customer requirements for more sustainable and flexible solutions are being met by an increasing, internationally felt lack of investment in thermoforming and packaging machinery...” the company said in the press release. “For Illig, this means that it has to invest heavily in technology and innovation without being able to compensate for this on the market side.”
Last year, Illig initiated an investor process to enable it to finance growth and innovation, but those efforts stalled due to the state of the economy.
The company is focusing on a clearer production and supply chain strategy, technological innovation and international market development, and said a new plant in Romania would allow a quick response when demand revives.