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Roco Update - August 2005

Today in the September edition of Model Rail, here in The Netherlands, there was an article headed “Roco in Crisis”. The gist of the piece was that Roco had been making a loss about 5 million Euros a year for the last two years, and despite a healthy turnover, things came to a head this year when no salaries where paid in July and the employees had no paid holidays this year.

            However the company has been rescued and the name Roco will continue with new production starting on the 5th August this year, albeit with a much reduced work force.

Very honoured customers and friends of ROCO

After the bankruptcy of the ROCO model play goods GmbH to 15. 7. we, the model railway GmbH, have 2005 to 25. 7. 2005 as rescue company the work taken up.

Since the name ROCO stands for 45 years for models, which let the hearts of the model railroad men strike in detail loyalty, handling characteristics and technology more highly. We feel committed to this tradition and look forward to it the mark ROCO again into a successful future to lead.

Due to the events it is to be revised necessarily our InterNet appearance and updated. We ask little patience for your understanding and.

This is a rough translation of the ROCO web site announcement that you may have seen. I think that the desperate state of the German economy has resulted in poor home sales, and of course things are not better here in Holland. It means that Roco NS models may well be delayed or even cancelled in favour of more popular DB models and it follows that prices will rise as stocks are replaced on the distributors shelves. So, this year’s Christmas present will have to be from the Roco NS catalogue, won’t it??

 

Roco in Difficulty?

We have received a report that Roco have filed for bankruptcy and have turned their receivables over to their bank, which is one of the first steps toward reorganisation bankruptcy. It has been suggested that this has come about for a number of reasons which include the cost of their new facility and the generally flat European market for toys. It could also be their adventure into the North American market and subsequent withdrawal which would seem to point toward too much out-goings with and too little coming in.

Roco has been producing quality models since the early sixties. Over the years they have strived for excellence and today are considered one of the finest production model train companies in the world.

This is a shock to the model railway industry. In the 1970s, Roco became Europe’s largest manufacturer of track. By investing heavily in automation they were able to produce track for other companies cheaper than those companies could produce it themselves. This resulted in their supplying much of the track sold under various trade names. Amongst their British customers was Hornby who had their track made in Austria by Roco for nearly 30 years before retooling it for production in China.

Marklin Shrinkage

Märklin has announced at a company meeting that it has sold Werk 3 on the Holzheimerstrasse. Also that the museum, training areas and warehouse will be moving to Werk 1 on the Stuttgarterstrasse by the end of September.

Werk 1 is the original (and very large) main factory, which was like a morgue when our correspondent visited early in May. Most European production had been relocated to the Trix factory in Nuremburg, Sonneberg in East Germany and Gyor in Hungary.

Werk 3 was a modern facility which was effectively the company HQ as well as housing the museum and warehousing, but was seriously under utilised. For the last couple of years the staff car park has been very lightly used and has been opened to museum visitors.

This does suggest that Marklin may be in some difficulty, as the considerable amount of money that has been spent on the museum in Werk 3 over the last few years (a complete refurbishment, two or three years ago, and a substantial improvement in security after the break-in early this year) was wasted. Sadly this move is also likely to reduce the number of visitors to the museum, as visitor car parking at Werk 1 is virtually non-existent.

Hornby Aquisitions

It is reported that Hornby's bid for Lima has been blocked by Lima Shareholders however, they have been more sucessful in taking over the Spanish company Electrotren

 

Please note, this information is provided in good faith and neither the BRS or its members or officers can accept any responsibility for inaccuracies in the information provided which may be subject to change. If intending to trael you are strongly advised to check the event by independent means

Latest from Roco

The following items just announced
63998 SNCB Diesel 5924 Released December 2003
47619 CFL 4 wheel stake wagon Released November 2003
47757 CFL Bogie Stakewagon Released May 2004
63391 NS Strukton Yellow 500/600 Diesel Shunter Released June 2004
44192 NS set of 2 4-wheel tankers Released June 2004 46975 NS grey
covered van epoch 3 Released July 2004 47608 NS Slide wall wagon
`Bensdorp Cacaobonen`Released May 2004 47609 NS Slide wall
wagon`Browerji Oranjeboom`Released May 2004 Some of the above are
standard releases,others are from the International Collection
requiring pre-ordering from stockists

Information received from Mike Pringle

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