Closing a factory is more than just an economic decision – it has far-reaching social and financial implications. How selling used machinery can not only free up budget, but should also be part of a comprehensive strategy to address this complex challenge.
Factory closures are a serious challenge for companies and employees alike and can be necessary for a variety of reasons. Often it is economic problems, especially if a factory is no longer operating profitably or is recording high losses. Technological change and the associated structural change can also lead to this. In other cases, mergers or takeovers are the trigger, with individual factories being closed in the course of restructuring. Finally, a lack of succession in company management or changing market conditions can also lead to a company having to close its doors.
Challenges of factory closure
Regardless of the specific reasons leading to a factory closure, this drastic measure brings with it a multitude of complicated challenges for both management and employees. The social consequences, such as job cuts, the payment of severance pay or the organisation of retraining measures for the affected employees, are often at the centre of considerations. In addition, legal issues also arise. These include the clarification and, if necessary, the termination of ongoing contractual relationships with suppliers, service providers and customers.
The financial burdens resulting from such a decision should also not be underestimated. The liquidation of assets, such as the write-off of assets or even the termination of current contracts, can have a significant financial impact. Therefore, careful financial planning is essential. The complexity of these challenges requires meticulous preparation, transparent communication with all stakeholders and a strategic approach to make the transition as smooth as possible.
What happens to the machinery and workshop equipment?
Company premises have to be cleared, warehouses emptied and any bulky waste professionally disposed of. In the process, many saleable stocks, furnishings and used machine tools come to light. Then the question arises of what to do with the existing machinery and workshop equipment.
It is worthwhile to enlist the help of a specialist for the sale of used machinery during a site liquidation. They take over the time-consuming work of organisation and also achieve a higher sales value for the used machines. This is precisely where Surplex comes into play. The industrial auction house helps companies to sell their machines efficiently and thus free up budget that can be used elsewhere.
Such corporate liquidation specialists undertake an initial evaluation of the machines, create a targeted marketing plan, and use their worldwide network to achieve optimal reach for the machines. The Surplex.com auction platform, for example, is available in 18 languages. Throughout the process, Surplex answers and coordinates all questions from interested parties and takes care of organising shipping and other logistical challenges such as customs. After customers have collected their purchases from the factory to be closed or the machines have been shipped, the empty building is handed over to the owner in a broom-clean state. This makes Surplex a reliable partner in difficult times like these
Surplex is one of Europe’s leading industrial auction houses and trades worldwide with used machinery and equipment. The 18-language auction platform Surplex.com records approximately 50 million-page views annually. More than 55,000 industrial goods are sold each year at more than 800 online auctions. The company is based in Düsseldorf (Germany) and has offices in 16 European countries. Over 220 employees from 20 different nations generate an annual turnover of more than EUR 100 million.