GEORGE TOWN: Barely three years after announcing expansion plans and the creation of jobs in Malaysia, German automotive system maker Blaupunkt is looking to wind up its operations here.
The company is undergoing a voluntary winding up of wholly-owned subsidiary Blaupunkt Malaysia Sdn Bhd and has appointed a provisional liquidator. Its directors have declared that the company can no longer continue its business due to its liabilities.
Blaupunkt Malaysia is believed to have more than 300 employees at its manufacturing facility in Bukit Tengah on mainland Penang. It has reportedly been serving customers such as Proton, Volkwagen, Audi, General Motors, Ford and Tata.
Business Times learnt that Blaunpunkt Malaysia held a meeting with creditors at a hotel, here, this week, and that two of its directors had declared to the Companies Commission of Malaysia that the company was unable to continue its business due to its inability to pay its debts.
A check on Blaupunkt Malaysia’s financials revealed that for its 2014 fiscal year ending December 31, the company recorded a revenue of RM88 million and a profit of RM881,296.
Its balance sheet shows non-current assets of RM21. 8 million, current assets totalling RM64.9 million, non-current liabilities of RM928,159 and current liabilities of RM52.5 million.
It is also learnt that one of the creditors, Nippon Express (M) Sdn Bhd, is seeking a court order to detain a portion of Blaupunkt’s goods currently stored in its warehouse on lien (a legal claim upon goods for the satisfaction of some debt or duty).
It is also seeking an injunction to refrain Blaupunkt Malaysia’s liquidator from disposing of the company’s products to third parties.
Nippon Express is a global logistics company that provides forwarding services and is also engaged in warehousing and customs clearance business.
The company is expected to have its case heard at the Penang High Court on October 27.
Blaupunkt GmbH chief executive officer Dr Lars Placke, who is also a director of Blaupunkt Malaysia, did not respond to email queries from Business Times on why the company was winding up its Malaysian operations and what would happen to the workforce.
A check on the company’s premises on Tuesday gave no indication of any winding up operations.
Blaupunkt began operations in Malaysia as part of the Robert Bosch Group. It was a wholly-owned subsidiary of Robert Bosch GmbH until 2009, when its aftermarket and accessories branch, including the brand name, was sold to Aurelius AG of Germany.