Finland-based wind power and industrial gear manufacturer Moventas says its operational subsidiaries, Moventas Wind Oy and Moventas Santasalo Oy, will file for corporate restructuring after unsuccessful financial negotiations.
As part of the restructuring, the administrative parent company of Moventas has filed for bankruptcy, and the necessary internal support services will be transferred to the subsidiaries.
Moventas says it was hit hard by the financial crisis, and the wind gear business, in particular, suffered during the downturn. Heavy investments in new manufacturing facilities also burdened the business, and negotiations related to financing the further development of the company have been ongoing since 2010, according to the company.
‘The message from our customers today in India and China, for example, is very optimistic,’ says Jukka Jaamaa, president and CEO of Moventas.
‘However, the past couple of years have proven tough, and we must focus our efforts on further improving cost efficiency across the business. We have overcapacity in Europe, whereas our customer base has now shifted largely toward growth markets, such as North America and Asia,’ he adds.