Graf von Westphalen advises Südsalz in deal to maintain operations of Bavarian saltworks
The Bavarian State Ministry of Finance and the operator of the salt mine in Berchtesgaden and the saline in Bad Reichenhall, Baden-Württemberg-based Südsalz GmbH, have agreed on a deal to safeguard the continued operation of these two facilities beyond 2050. Salt mining and the saltworks will remain a hallmark and key element of regional identity in Berchtesgadener Land. Directly and indirectly, the deal also secures 300 jobs in the region.
The negotiations were conducted by Bavarian Finance Minister Markus Söder; Secretary of State Franz Pschierer; Südsalz GmbH management board members Kai Fischer and Hans-Joachim Voss; Bad Reichenhall Mayor Herbert Lackner; the Finance Ministry's bureau chief, Wolfgang Lazik; and the head of the Ministry's legal department, Dr Klein; as well as attorney Eric Messenzehl, partner at Graf von Westphalen.
The negotiated solution ensures that the millennia-old salt-mining tradition in southeastern Bavaria will continue into the future. An uncertain legal situation had caused Südsalz GmbH to freeze the investments necessary to maintain salt mining in Berchtesgaden, a complex technical process, and support top-quality production in Bad Reichenhall, thereby jeopardizing the future of this important element of regional identity. From the perspective of the affected employees, the key benefits of this deal are its long term and, above all, the fact that the legal relationship can be terminated only by mutual agreement.
Had the Bavarian Finance Ministry and Südsalz failed to reach an agreement, the district would have lost several hundred jobs and an important economic factor. Moreover, Bavaria's most venerable economic asset could have suffered an ignominious ending.
Graf von Westphalen represented Südsalz GmbH in all relevant legal matters during the negotiations and preliminary talks, with Frankfurt-based partner Eric Messenzehl and his associate Benjamin Schwarzfischer covering all aspects of corporate and contract law. The public law aspects were handled by Sigrid Wienhues, partner in the Hamburg office.
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