Heinen Emerges from Restructuring Process
As a Leaner, More Agile Supplier of Freezers

Michaela Teschner and Jochen Hottinger of Heinen Freezing look forward to a positive year now that the company has restructured its business to become more competitive in today’s marketplace.

After a difficult year during which bankruptcy was filed last October 20, a more streamlined and revitalized Heinen Freezing GmbH & Co. KG was born again on December 29. One day later it received a EUR 1.27 million contract for a high capacity freezer from a major baked goods company.

The order was regarded by management as both a belated Christmas present and an early New Year gift for the Varel, Germany-based designer and manufacturer of food freezing, cooling and proofing lines. By March the company had EUR 6 million worth of new orders on the books.
“We went though an earthquake in 2009, but have survived and are now working harder than ever to satisfy loyal customers and win new clients,” said Managing Director Jochen Hottinger, who is a 20% limited partner in the firm.

The new majority owner, with a 75% stake, is Kahl Holding GmbH, a Reinbek, Schleswig-Holstein-headquartered machine manufacturer with approximately EUR 100 million in annual revenues. The third limited partner is Helge Pahl, who has five percent of the shares. Hottinger and Pahl have been Heinen executives since 2001 and 2005, respectively.

The revamping of Heinen Freezing, which has been in business since 1984, saved the jobs of 40 employees. Approximately 20 people were made redundant, as the new structure parted ways with former sister company Heinen Drying. That troubled unit had been restructured under Heinen Freezing last spring. However, it proved to be a financial drain on the business, and thus was not included in the second restructuring and sale of assets late last year.

There were several bids ultimately made for Heinen Freezing.

“We were of course very pleased that the Administrator accepted our offer, which included all assets, brands and responsibility for the livelihood of 40 people,” said Hottinger.

Hottinger, voicing optimism about future prospects, told Quick Frozen Foods International magazine: “The market in Germany is good now, and the same goes for Poland. We just got an order from Spain for four spiral systems, as well as another big order from Sweden.”

While Europe remains Heinen’s primary market, the company has also been quite active in Egypt recently. It is presently engaged in a major project in Cairo, where a poultry processing plant now being built will have capacity for one million birds per day.

“We have full confidence as well as competence, and are the only industrial freezer manufacturer that can offer all types of systems,” said the managing director. “From Compact Spiral and Arctic units that are popular with makers of baked goods, fish, poultry, red meat and pizza, to our Packfrost model, which is ideal for ice cream and other products, Heinen units are on the job throughout the food industry.”