F&P Case StudiesTurnaround in a critical situation
Expert: Dr.-Ing. Jens Christian Lamprecht
F&P Case STudiesTask definition
- Company running a heavy loss, existence threatened
- Commissioned by the parent company to downsize the company, optimize processes and return to profitability
Industry / Function / Environment/ Expert
- Paper industry
- Management / Board of Directors
- Turnaround / Prevention of insolvency
- Dr.-Ing. Jens Christian Lamprecht
Project description
- One of the two managing directors was on leave, the other was still in office as he was also the shareholder’s representative. Communication with the workforce was extremely difficult (language, culture). The company was virtually without management.
- One location was experiencing considerable market-related difficulties (technical and portfolio) and was to be closed. The largest location had massive burdens due to high energy costs (set-up of energy procurement) and high production costs induced by inefficient processes
- Measures had to be defined and implemented at short notice in order to obtain a positive going concern forecast as at the balance sheet date.
Result
- New communication concept developed and successfully implemented, gaining buy-in from the workforce for tough cuts.
- Sell-or-close analysis showed the economic impossibility of closing the site – sale initiated and successfully completed.
- Restructuring of the remaining site by streamlining the portfolio, adjusting staffing levels and filling key positions.
- Reorganization of energy procurement led to significant relief on the cost side.
- Turnaround after 6 months
Customer reference
- International company in the paper industry
- Approx. 700 employees in Germany
