"Big blow"

Insolvency at KTM: AMS boss expresses “sympathy”

AMS Austria board member Johannes Kopf.

(Bild: picturedesk.com/EVA MANHART)

The insolvency application for KTM AG and two other companies of the motorcycle manufacturer from Mattighofen (Upper Austria) is expected to be filed at the regional court in Ried in the next few hours, leaving 3650 employees and an entire region trembling. AMS Austria board member Johannes Kopf is also affected. He speaks of a "major blow".

It has been known since Tuesday afternoon that KTM AG as well as KTM Components GmbH and KTM F&E GmbH will file for insolvency today, Friday - specifically an application for the opening of restructuring proceedings with self-administration. This is a blow for the 3650 employees who work in the three affected companies, as well as many suppliers who also depend on KTM and are now forced to make severe cuts. Pure uncertainty!

"Can't understand what has happened"
"Many employees at KTM, but also people who live in Mattighofen and the surrounding area, for whom this company is so important, cannot understand what has happened," said AMS Austria board member on Thursday evening in the ORF magazine ZIB 2. Kopf continued: "In spring, profits from last year were still being paid out, in summer the owner bought another company, and now insolvency is being filed."

KTM is such an important employer in the region that the situation is already worrying.

Johannes Kopf, Vorstand AMS Österreich

Reduction of 300 production employees is fixed
Kopf expressed his concern: "I would like to express not only our support but also my sympathy to the people. This is a big blow." Behind the scenes, the wires have been running hot for days between the Public Employment Service and the province of Upper Austria, and various options are being worked on to absorb as many employees as possible. This is because KTM had already announced before the insolvency became known that it would be laying off around 300 workers in production. There will also be cuts in administration, the extent of which has not yet been defined. In addition, there are the many companies that depend directly or indirectly on the motorcycle manufacturer.

"Hopefully we will succeed in finding a job for some of the employees," says Kopf. The establishment of a foundation is being considered - in which people who lose their jobs could receive further training.

"Sticking your head in the sand is not an option"
From KTM to Siemens, where the closure of the plant focusing on industrial power supply in Vienna was announced, as well as the Schaeffler decision to close the plant in Berndorf (Lower Austria) - the news has been coming thick and fast in recent days. "I'm worried myself, but you have to take countermeasures here, burying your head in the sand is not an option," says Kopf.