Samvardhana Motherson International Limited (SAMIL) announced yesterday that its wholly owned subsidiary, Samvardhana Motherson Automotive Systems Group B.V. (SMRP B.V.), will wind down business operations at the Judenbach plant, one of the facilities acquired through its purchase of Dr. Schneider group in October 2023.
According to the regulatory filing submitted to the BSE and National Stock Exchange of India, this planned closure was anticipated at the time of acquisition when Dr. Schneider was under insolvency administration. SMRP B.V. had already engaged in discussions with key customers about restructuring measures to ensure long-term competitiveness.
The company stated that the wind-down of the Judenbach plant will not have any financial impact on SMRP B.V. or SAMIL as it was factored into the acquisition planning. Customer supplies currently fulfilled by the Judenbach facility will be transferred to other group facilities in the region.
Financial disclosures in the filing reveal that the Judenbach plant contributed only 0.27% to SAMIL's consolidated revenue and 0.19% to its net worth as of March 31, 2024. The plant generated an annualized revenue of INR 2,668 million (EUR 27.3 million) compared to SAMIL's consolidated revenue of INR 986,917 million.
Negotiations with the works council are targeted to start in May 2025, with the plant closure estimated to be completed by the second quarter of fiscal year 2027. The company emphasized that the transfer of business to other regional plants will improve competitiveness while maintaining customer supplies.
Motherson acquired the assets of Dr. Schneider group following an unsuccessful operational and financial restructuring. The German automotive supplier specializes in interior components and systems. The acquisition was part of Motherson's strategy to expand its product offerings and strengthen its European presence.
The company noted that the closure will be carried out in compliance with all applicable regulatory requirements, and that machines and equipment from the facility will be repurposed for alternative usage.