In view of the economic meltdown in the US and Europe and consequent liquidity crisis caused by sharp reduction in getting orders, the subsidiaries of Sakthi Sugars in Germany and Sweden have filed for bankruptcy.
The sugar major has informed the stock exchanges that its subsidiaries – Sakthi Germany GmbH, which owns and operates two plants in Germany, and Sakthi Sweden AB, the Swedish holding company and Arvika Gjuteri AB, having a manufacturing facility in Sweden, filed for financial reconstruction under Swedish laws.
Sakthi Auto Component, the wholly owned subsidiary of Sakthi Sugars, acquired a group of companies – “Intermet Europe” in April 2007. Later in February 2008, its European subsidiary acquired the Swedish company Arvika Gjuteri AB. The annual production capacity of the Swedish subsidiary is 28,000 tonnes of castings.