Varta: Strategies failed - cyber attack as a turning point?

Varta: Strategies failed - cyber attack as a turning point?

The once renowned battery manufacturer Varta is in a deep crisis marked by a dramatic loss of more than 30 percent of its share value, reaching its lowest level since its 2017 IPO. The reasons for this development are diverse. In particular, the declining sales figures for lithium-ion button cells, which are used in wireless headphones and hearing aids, as well as declining demand for energy storage for photovoltaic systems in homes are putting a heavy burden on the company.

Restructuring plans agreed a year ago with the banks and majority shareholder Michael Tojner have proven to be inadequate. Varta had hoped to be profitable again by the end of 2026, but this goal now appears to be a long way off. The company's digital transformation was further impacted by a serious cyberattack that disrupted the production chain and plunged the company into chaos. It took weeks for production to resume while key company data was at risk.

Varta's challenges are compounded by large inventories that are depressing prices, as well as strong competition from Asia. In order to survive in global competition, it is emphasized that European companies in the battery industry need to join forces more closely. In addition, the European industry must cooperate more in order to remain competitive with its Asian market competitors, especially from China. European companies are technologically at the same level, but are at risk of losing out to Chinese offerings.