Overview
It has long been understood that transitioning from the internal combustion engine to electronic vehicles would significantly change the automotive industry. To accelerate its transformation process and be more fully prepared for powertrain electrification, our client decided to close its ball bearings manufacturing plant in Homburg, Germany. Liquidity Services, partnering with Maynard Industries, managed the sale of surplus assets resulting from the Homburg closure, as well as closures in several other European facilities.
Challenges
With the new site owner requiring a “broom clean” factory and a ten-month window for closure, asset sales needed to move forward as quickly as possible, even though production was ongoing.
Liquidity Services managed this challenge by conducting asset sales as each area of the plant closed. As one area was shut down, the assets in that area became available and were brought to market through Liquidity Services’ AllSurplus marketplace.
The Results
Prior to Liquidity Services' involvement, the plant had negotiated the sale of key machines to a plant vendor. After learning this, the Liquidity Services team prevented the sale from moving forward with the vendor by demonstrating our expertise and global reach. Offering the machines to the global market through AllSurplus.com, Liquidity Services increased the client's offer by more than 50%. Several sales were conducted, including an online auction and a tender sale at key points in the year to meet the client's needs.
This project resulted in 100% site clearance within the client’s deadline, recouping a total of €4.2M in working capital that our automotive client used to offset the cost of further electrification investments.
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