Plastal Holding AB, a Sweden-based supplier of engineering plastics to automotive market, has filed for bankruptcy at the nation's Mölndal district court owing to severe liquidity crisis led by slump in the automobile industry and difficult credit market. For Swedish Plastal group companies, all deliveries into the plants will be suspended. However, deliveries to customers may continue provided that the customers assume the cost of the freight, the press release said. Since January, the important markets for the company has slowed and projected market volumes for the first two months 2009 are 40% lower than volumes for the first two months 2008.
"The drop in demand has been both unexpectedly sudden and large towards the end of last year and continued in the beginning of this year. The consequences have been more severe than anyone could have predicted. The current market conditions continue to be extremely uncertain and it has therefore not been possible to find a sufficient long term solution for Plastal, says Curt Germundsson, Chairman of the Board of Plastal Holding AB." The Plastal group has been a victim of deepening crisis in the automotive industry and is directly affected by reductions in its customers' production volumes in Europe and else where. Plastal has strong market positions in the premium segment of the car market and the light and heavy truck markets. The company manufactures and surface-treats the interior and exterior plastic components, assuming responsibility for both system and function.
09-Mar-09 
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