New Delhi, April 9 Bharat Forge Ltd announced on Thursday that its board has approved the restructuring of the steel forging operations of its subsidiary in Germany, including the possibility of closing the operations due to market challenges and associated cost disadvantages.
The company's board, which met on Thursday, has also approved a financing arrangement of up to EUR 30 million for the restructuring, Bharat Forge said in a regulatory filing.
The board reviewed and evaluated a proposal for the phased restructuring of the steel forging operations of Bharat Forge CDP GmbH (BF CDP), its wholly-owned subsidiary located in Ennepetal, Germany, it said.
"The proposal may include an orderly wind-down and solvent liquidation of BF CDP, in accordance with applicable German laws," it said.
The company further said, "This is being considered in light of the market challenges and the associated cost disadvantages faced by BF CDP in Germany."
To facilitate the proposed restructuring, the board has approved a financing arrangement of up to EUR 30 million and has delegated the necessary authorities to its sub-committee to oversee further evaluation and implementation, it added.