French no-till drill manufacturer Novag has filed for bankruptcy and initiated debt restructuring proceedings.
The company blames the heavy investment in production and development and the downturn in global agricultural machinery markets. The aim of the restructuring process is to find ways to improve the liquidity of the company to continue operations. Until this is sorted, machines are still being produced at the main French plant, and spare parts are also available.
Novag was founded in 2011, and two French investment funds provided additional financial support in 2023. This made it possible to both increase storage capacities and expand production capacities with the aim to further grow in France and internationally.
The German market is one of the most successful for the French manufacturer, and according to our colleagues at profi.de, the firm’s German subsidiary in Hanover, which was founded in 2022, is not affected by the French proceedings.
Novag management are optimistic for the future and are confident that the insolvency proceedings will be quickly wrapped up.
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