Paulsen Wire Rope gives up the struggle30 October 2001
After 18 months of losses, banks have pulled the plug on Paulsen Wire Rope.
The company, based in Sunbury, Pennsylvania, USA, had been losing money for 18 months, having lost a a major customer in the elevator business last year.
Chief executive Wolfgang Oswald joined the company in August this year to lead a turnaround programme and in September Paulsen actually made a profit, Oswald says. Despite this, the company’s bankers chose not to extend financing agreements when they expired on 1 October.
Oswald said that Paulsen would continue operations only until live contracts were completed and inventory sold. At the same time, the management is also seeking bids for the company. ‘There are definitely companies out there with a strategic interest in Paulsen, both from within the USA and outside,’ said Oswald.
Since 1997 Paulsen Wire Rope has been a subsidiary of Casar of Germany. Before that, it was Casar’s US distributor.