The oldest company in Saxony is bankrupt. Eisenwerk Erla had to file for bankruptcy after more than six centuries of existence. As announced by the district court in Chemnitz, bankruptcy proceedings have been initiated for the property of this ironworks. A meeting of the company's key creditors is scheduled for May, and the current management will try to restructure the company together with the court administrator, German "Focus" reports, Politika.rs reported.

The steel mill, which employs 300 people and whose most important customers are in the automotive industry, manufactures turbocharger housings and engine components for the automotive industry, among other things.

Focus states that high raw material and energy costs are the main reason for Eisenwerk Erla's financial difficulties. In the latest annual report published by the iron and steel industry for 2020/21. sales fell to 51,3 million euros. The loss amounted to two million euros, a year earlier it was as much as 3,6 million euros.

About 400 steelworkers from six companies demonstrated last week in Riza, Saxony, over the ever-increasing electricity prices, which the Union of the Metallurgical Industry says is difficult to monitor. The oldest company in Saxony was first mentioned in historical documents in 1380.