Turbulence at battery system manufacturer BMZ: German subsidiaries insolvent

The BMZ Group is primarily known for producing lithium-ion battery packs. Customers include Daimler Buses, which sources new battery packs (“NMC 4”) for the Mercedes-Benz eCitaro from BMZ Poland. The latter, as well as other foreign subsidiaries, are reportedly unaffected by the insolvency.

In the press release, the group outlines the situation as follows: the background to the insolvency of BMZ Germany GmbH is “an acute liquidity crisis and the need for restructuring following the loss of a major customer in the energy storage segment, as well as resulting legal disputes and cost burdens.” The customer’s identity was not disclosed. It is clear, however, that BMZ Holding GmbH is also affected due to a guarantee commitment and had to file for subsequent insolvency. The holding company had guaranteed the German subsidiary under this commitment.

For this reason, the group filed for self-administered insolvency for its insolvent companies, which was approved by the District Court of Aschaffenburg on 24 October. The existing management is “working on a viable restructuring plan to be implemented after the insolvency proceedings are completed.”

The company states that the aim is to spin off the operational business of BMZ Germany GmbH into a new structure. Existing customer relationships will be maintained. Operations continue, thanks to a “bridge financing from the shareholder circle,” the statement adds. The “other companies in the group’s core business” remain operationally healthy and unaffected. These liquid subsidiaries include BMZ Inc. in the USA, BMZ Innovation Group in the UK, BMZ S.A.R.L in France, BMZ Sp. z o.o. in Poland, BMZ Company Ltd. in China and BMZ KK in Japan.

The insolvent BMZ Germany GmbH is, however, by far the oldest subsidiary and forms the foundation of the company, which was established in 1994. The affected BMZ Holding GmbH is the parent company of the BMZ Group, and controls strategic direction and global operations. This parent company will likely need to be restored.

The strategic realignment is officially focused on technological core competencies, cost savings and targeted growth initiatives (“particularly in battery systems for industrial applications and customised energy storage solutions”). The company does not explicitly state a job creation plan, though job cuts could fall under the cost-saving measures. Currently, the group employs more than 2,300 people worldwide.

BMZ was founded in 1994 in Karlstein am Main, focusing on lithium-ion systems for stationary storage and electric vehicles. The group operates production facilities in Germany, China, Poland and the USA, as well as offices in Japan, the UK and France. In addition, it maintains global research and development sites, with 230 employees in its in-house development team.

Among the best-known shareholders of BMZ is entrepreneur and Quandt heiress Susanne Klatten. Her company, SKion GmbH, acquired a 20 per cent stake in the BMZ Group in 2022.

bmz-group.com (PDF; in German)

This article was first published by Cora Werwitzke for electrive’s German edition.