Chinese-owned Swissmetal sold to Swiss investors
The cash-strapped Baoshida Swissmetal company has been taken over by a group of Swiss investors six years after it was sold to a Chinese group.
The newly-founded Swissmetal Industries, backed by two private investors, said it had acquired the firm, which employs about 160 people at two factories in the small towns of Dornach and Reconvilier.
The near-bankrupt copper alloy manufacturer went into provisional receivership, but a plan for a debt-restructuring moratorium was delayed several times pending a legal case.
The main creditor, the Chinese Development Bank, gave a €15 million (CHF16.4 million) loan to Baoshida Swissmetal in 2016 and has accused the administrator of providing insufficient information about the financial situation of the manufacturer. In May, the Chinese Development Bank refused an offer of CHF9 million by Swiss Team for the company.
The Chinese chief executive of Baoshida Swissmetal was dismissed in 2018 and was given a suspended prison sentence by a Swiss court for unlawful business practices last year.
On Tuesday, the new owners of Swissmetal announced plans to restructure the company in the near future and limit its production to one factory.