The Austrian industrialist and major Varta shareholder Michael Tojner warns of deindustrialization in Europe. “We are in danger of becoming Europe’s Disneyland,” said Tojner in an interview with APA. The investor is also worried about Austria as an industrial location. “The gradual relocation” of parts of domestic industrial production abroad is a problem and the future federal government must take countermeasures, for example by reducing additional wage costs.
The industrial holding Montana Tech Components AG around Tojner includes the ailing German battery manufacturer Varta and the aviation supplier Montana Aerospace as well as the packaging manufacturer Aluflexpack until the sale is closed in January or February 2025. The packaging manufacturer Constantia Flexibles, based in Vienna, is taking over Aluflexpack. The Montana Group has invested over two billion euros in the past ten years, 80 percent of which was in industrial companies in Europe, said Tojner.
Varta had overextended itself with a risky expansion course and failed investments and is now seeking rescue in the pre-insolvency StaRUG proceedings. The restructuring should now proceed as follows: After a haircut, the share capital of Varta AG will be completely reduced to zero. Immediately following the capital cut, a company controlled by Tojner (MT InvestCo) and an investment company of the German sports car manufacturer Porsche AG are to join as new shareholders, each with 30 million euros. The current shareholders leave without compensation and the group loses its stock market listing. The German Association for the Protection of Securities Ownership (DWS) accuses the Varta board of ignoring the interests of small investors.
Tojner sees the causes of the crisis at Varta in the battery manufacturer’s investment policy. Like the Styrian-Bavarian chip and sensor manufacturer ams-Osram or the Styrian circuit board manufacturer AT&S, they have become dependent on the US giant Apple. “We financed the investments with debt capital and not with equity and that’s why we slipped into the crisis,” said the major Varta shareholder. There are also teething problems with a battery cell for the automotive industry. The renovation of Varta together with Porsche should be completed by 2027. Tojner will no longer be the majority owner of Varta in the future.
The Swedish battery cell showcase project Northvolt is also in crisis. Asian companies have so far dominated the development and production of electric car batteries. A cross-border project like Airbus in the aviation sector is “necessary” for the European battery industry, according to the domestic investor. Northvolt has so far raised more than $15 billion in equity and debt capital from banks and investors, including Volkswagen. Northvolt ran into difficulties due to a slow production ramp-up and canceled orders.
Tojner hopes that the new EU Commission and the EU states will develop initiatives for a common defense and foreign policy and for a capital markets union. A “joint, united appearance in the negotiations with Russia and China” is necessary. There is also a need for “an understandable and stringent immigration policy in Europe” with quick asylum procedures. In Austria, the entrepreneur misses “a targeted immigration policy for talented and highly gifted people”.
In view of the increasing budget deficit, the local industrialist has identified many construction sites for the future government. In Austria, in addition to reducing non-wage labor costs, one must also “address the issue of pensions” because the pension system will “no longer be financed” in five to ten years. The pressure to save is also increasing due to the rising costs of care and national defense. Tojner sees potential for quick savings in the climate bonus and educational leave.
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