In 2026, the fate of another century-old German textile machinery manufacturer affects everyone’s hearts.
STC Spinnzwirn, a German company with a history of 160 years, is now facing unprecedented difficulties.
As orders continued to decrease and costs continued to rise, the textile machinery manufacturer had to file for bankruptcy, and its 140 employees are currently facing uncertainty about their jobs.
The equipment produced by this company has a wide range of uses, and part of it is also used in the manufacture of artificial turf.
The Chemnitz District Court has appointed lawyers as provisional insolvency administrators.
The manager said in an interview: “The core business of the company is healthy.” He believes that the company is still likely to find a sustainable development path.
The company’s management also maintains an optimistic attitude. General Manager Nico Dürrschmidt emphasized in a statement: “The customer orders we are executing will continue to be completed.”
So, why did this company fall into bankruptcy?
According to the provisional bankruptcy administrator, geopolitical uncertainty is one of the important reasons why companies are in trouble.
Changes in the international situation have led to an increase in raw material prices and a decrease in order volume.
“As a result, the company’s turnover and profits have dropped significantly,” he said. At present, the primary goal is to ensure that this long-established company can continue to exist.
Employees’ wages can still be guaranteed through bankruptcy subsidies from the German Federal Employment Agency until July, and bankruptcy proceedings are expected to be officially launched on August 1.
Looking back at the history of this company, it can be traced back to 1866, when the “Carl Hammel AG” was founded in Schonau near Chemnitz.
AG), initially produced ring twisting machines.
After World War II, the company was nationalized and became the “Karl-Marxstadt Textile and Twisting Machinery Manufacturing Complex (VEB)” during the East German period, focusing mainly on textile machinery, especially winding and stretch twisting equipment.
After the reunification of Germany and Germany, the company was re-privatized and renamed Barmag Spinnzwirn in 1991. In the autumn of 2018, it was changed to its current name STC Spinnzwirn.
Until recently, the company mainly produced precision winding heads and equipment for artificial turf and textile tapes.
An old company with a history of 160 years is now in bankruptcy crisis due to various factors. This is not only a challenge for the company itself, but also reflects the difficulties faced by the manufacturing industry in the current global economic environment.
It is hoped that with the efforts of the temporary bankruptcy administrator and the active response of the management, this company can find a path to rebirth and continue to shine in the field of textile machinery.
