German diecaster DGH Group has begun insolvency proceedings, sources close to the matter told Fastmarkets on Friday June 19.
Fastmarkets understands that the insolvency action pertains to three group companies - DGH Heidenau, DGH Hof and DGH ZIT - with appointed insolvency administrator Franz-Ludwig Danko currently considering potential restructuring options.
The company, headquartered in Donha, Germany, produces an estimated 70 million die-cast aluminium and magnesium automotive parts each year, supplying carmakers including BMW, Volkswagen, Porsche and Audi.
But with automotive demand unprecedentedly low amid the ongoing global Covid-19 pandemic, the secondary aluminium supply chain has almost ground to a halt, forcing many carmakers, diecasters and smelters to take dramatic measures to stay afloat.
Jaguar Land Rover, for example, announced that it would cut 1,100 jobs across...