Samvardhana Motherson International Limited (SAMIL) has announced plans to wind down operations at its Judenbach plant, a facility acquired through the purchase of the Dr. Schneider group in October 2023. The decision to close the plant was anticipated at the time of acquisition, as Dr. Schneider was under insolvency administration. SAMIL had already engaged in discussions with key customers about restructuring measures to ensure long-term competitiveness. The company has stated that the wind-down of the Judenbach plant will not have any financial impact on SAMIL or its subsidiary, SMRP B.V., as it was factored into the acquisition planning.
The Judenbach plant contributed only a small percentage to SAMIL’s consolidated revenue and net worth, generating an annualized revenue of INR 2,668 million (EUR 27.3 million) compared to SAMIL’s consolidated revenue of INR 986,917 million. Customer supplies currently fulfilled by the Judenbach facility will be transferred to other group facilities in the region, ensuring continuity of service. Negotiations with the works council are set to begin in May 2025, with the plant closure expected to be completed by the second quarter of fiscal year 2027.
The acquisition of Dr. Schneider group was part of SAMIL’s strategy to expand its product offerings and strengthen its European presence. The company specializes in interior components and systems, and the acquisition was seen as an opportunity for SAMIL to enhance its capabilities in this area. The closure of the Judenbach plant is seen as a necessary step to improve competitiveness, while maintaining customer supplies. The company has emphasized 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.
The decision to close the Judenbach plant is a strategic move by SAMIL to optimize its operations and improve its competitive position in the European market. The company’s focus on expanding its product offerings and strengthening its presence in the region is expected to drive growth and profitability in the long term. With the transfer of business to other regional plants, SAMIL is confident that it can maintain customer supplies while improving its overall competitiveness. Overall, the closure of the Judenbach plant is a necessary step in SAMIL’s strategy to drive growth and success in the European market.