
The 130-year-old company faced a financial crisis due to rising energy prices and falling sales in the auto industry.
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Prinz&Co. Stahlrohre was founded in 1896 and specializes in the production of high-precision steel tubes for the automotive industry.
German manufacturer of automotive components Prinz&Co. Stahlrohre declared bankruptcy after 130 years of activity, and hundreds of employees were at risk of dismissal, the Bild newspaper reports.
The Essen court launched preliminary insolvency proceedings against the company on September 9.
It is clarified that the family business was founded back in 1896 and currently specializes in the production of high-precision steel pipes, supplying parts for car seats, airbags and hydraulics around the world.
As interim manager Christian Holzmann said, the bankruptcy was led to by the protracted crisis in the European automotive industry, a sharp rise in prices for raw materials and energy, as well as a catastrophic drop in sales in the summer months.
Rising prices for raw materials and energy, coupled with high fixed costs, have further exacerbated the company's financial burden, Holtzmann said.
It is reported that financial problems directly affected four production sites of the company in the federal state of North Rhine-Westphalia, where more than 300 people were at risk of layoffs. However, at the moment, the work of the factories continues, and payments to employees are provided for the next three months.

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