Stock market value collapses completely Traditional Swiss company on the brink - thousands of employees tremble

The Swiss steel foundry Swiss Steel is struggling with a dramatic economic situation. According to a media report, the company needs rescue measures, otherwise it could go out of business.

The Swiss steel manufacturer Swiss Steel is in a serious financial crisis. Main shareholder Martin Haefner had to inject 300 million Swiss francs in the spring to support the company. Since then, the situation has deteriorated dramatically, as theSonntagszeitungnewspaper reports.

The stock market value has fallen by more than 75 percent within six months and the capital from the increase has already been burned through. According to the Sonntagszeitung, a large number of people are working short-time.

The problems at Swiss Steel are closely linked to the crisis in the European automotive industry, particularly in Germany, where the company is experiencing heavy losses. The plants in Germany are operating well below capacity and demand for steel continues to fall.

Is there a threat of loan defaults as early as next year?

Despite this crisis, Swiss Steel has not yet taken any aggressive cost-cutting measures. The delay in implementing a far-reaching restructuring is increasingly being blamed on the management, reports the Sonntagszeitung.

The fact that the company will probably no longer be able to meet the banks' credit conditions next year is particularly problematic. If these conditions are not met, there is a risk of loan defaults.

The mountain of debt and the foreseeable losses could force the company to resort to rescue measures again, possibly through a further capital injection from Haefner. If the losses materialize as expected, Swiss Steel could soon find itself in serious financial difficulties. According to the company, this would affect over 7500 employees worldwide.