Industry News
New owner sought for German TMD Friction operations
16th January 2009
A new owner is being sought for the German operations of the brake component manufacturer TMD Friction after it filed for bankruptcy for its four units based in the north western German state of North Rhine-Westphalia.
TMD Friction, which has its corporate headquarters in Luxembourg, supplies Textar, Pagid, Mintex, Don, Cobreq, and Cosid branded brake pads to the worldwide road car and motorsport markets. Its German operations employ approximately 2,000 people.
In a statement release by TMD Friction, its CEO Derek Whitworth said, “I am deeply saddened that we have not been able to reach an agreement with our lenders and shareholders to avoid this action. Although the operative business of TMD Friction is healthy, the rapid slowdown in the automotive industry has led to a very high level of pressure on our cash flow.”
The German law firm Kebekus & Zimmermann has been appointed as administrator for the TMD Friction companies and is seeking buyers or investors that will enable them to continue as going concerns.
TMD Friction operates manufacturing facilities in Germany, the UK and other European countries, the USA, Brazil, Mexico, China, Japan and Malaysia, and it employs 4,500 people worldwide.
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