July 2, 2020: Akkumulatorenfabrik Moll, the German family battery business which filed for insolvency on March 30 because of the Covid crisis, said on June 18 it was in talks with potential investors.
Owner Gertrud Moll-Möhrstedt, whose father, Peter, founded the business 75 years ago, said it was too early to give precise details of the discussions, however “we are still optimistic that a good solution will appear”.
In a statement, the firm said sensitive discussions were taking place aimed at finding a rapid resolution in the interests of all parties.
“The goal is to find a strong partner, enabling the company to continue its growth, further strengthening its position as an innovative powerhouse,” the firm said.
“All innovation and development projects remain on track and continue to be driven forward. This means, despite the restructuring process, sustainability and innovation is still being assured. Recently, pre-finance for future growth had already been given the green light and Moll is currently in the process of bringing three innovations to market maturity.”
The timing of the Covid crisis could hardly have been worse for Moll, which had a full order book and was operating at full capacity when the outbreak shattered global trade.
When Moll filed for insolvency, Moll-Möhrstedt said: “In the current situation it is not possible to predict whether and when sales will recover. It is highly probable that even if automobile production resumes, it will take many months, perhaps even years, for sales to return to the level seen at the beginning of the year.
“Therefore, we thought that it would appropriate to act very early.”
Market research analyst Technavio predicts the global automotive lead battery market will grow by $12.26 billion between 2020 and 2024, which “marks a significant slowdown compared to the previous year’s growth estimates due to the impact of the Covid-19 pandemic in the first half of 2020″.
“However, healthy growth is expected to continue throughout the forecast period, and the market is expected to grow at a CAGR of over 5%,” Technavio says.