Germany is a manufacturing powerhouse, known for its craftsman spirit, and its industrial manufacturing rigor and seriousness have long been famous all over the world. In Germany, more than 800 enterprises, after more than 200 years of wind and rain, with lasting quality and reputation, cast one legend after another. But the market is changing, technology is developing rapidly, and some of the giants are not doing well and have fallen. For example, Germany's largest machine tool factory--- Waldrich Coburg, was on the verge of bankruptcy.
Waldrich Coburg Machine Tool Factory was once a leader in the world machine tool manufacturing industry. Since its inception, it has been firmly in the top position in the international market with exquisite craftsmanship and excellent quality. With the intensification of market competition and internal management problems, the company's performance has gradually declined, and its liabilities have continued to rise.
The once-glorious factory was saddled with a heavy debt of 3.4 million euros, or about 25 million yuan at the exchange rate at the time. For a time, the factory was lifeless, and in the face of such a predicament, the factory had to seek outside help.
In 1996, the news of the acquisition of the American Ingersoll Machine Tool Factory brought a ray of life to the factory on the verge of bankruptcy. The employees are very happy and look forward to the new owner being able to lead them out of this difficult situation. As a result, it led to an even greater abyss, and in just three years, the US parent company also declared bankruptcy due to poor management.
It turned out that the products of these factories were highly similar, which led to fierce competition in the market, so they were all in trouble. Seeing that the parent company has collapsed, and the subsidiary has no way to recruit, the United States can only sell it.
In 2005, Beijing No. 1 Machine Tool Factory came to the rescue and spent 120 million euros to acquire it. This decision caused a lot of doubts and concerns at the time. After all, even a powerful American company has not been able to turn things around, let alone an enterprise from the East? However, the First Machine Tool Factory has broken everyone's doubts with practical actions.
After the acquisition, we did not lay off the original employees, but implemented a series of effective reform measures. It not only retains the original technical and management team, but also injects new vitality and innovative thinking, focusing on the research and development of high-precision products.
After four years of careful operation, the Waedrich Coburg Machine Tool Factory has received more and more orders, and the new products have been well received, not only successfully turning a profit, but also adding more than 200 employees (about 5,000 people today), creating an amazing result. In 2009, the factory, which was once on the verge of bankruptcy, earned 170 million euros, or about 1.3 billion yuan. In 2023, it will generate revenue of 1.25 billion euros and a profit of 130 million euros.
This achievement not only impressed everyone, but also put those who were once skeptical of Beijing No. 1 Machine Tool Factory to shame. It has been proven that Chinese companies can not only successfully take over and renovate a German factory on the verge of bankruptcy, but also carry it forward and create even more brilliant results.
In fact, the acquisition in China was not impulsive, but based on an in-depth analysis of the machine tool market and a full understanding of Waldrich Coburg. We see the advanced and market potential of the factory's machine tool technology, as well as its historical heritage and brand value. So China decided not only to save the bankrupt company, but also to build it into a new profit growth point.