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Dynamatic Technologies on Thursday announced that the company’s step-down subsidiary Eisenwerk Erla GmbH, Germany (EEL) is in the process of transformation from automotive and foundry-focus to the aerospace business.

Citing the rationale behind the move, Dynamatic Technologies said that EEL was currently facing various challenges like supply chain crisis at OEMs (original equipment manufacturers), current inflation in Europe, steep and unpredictable increase in the cost of gas and electricity.

Based on advice from professional experts, EEL has decided to undertake the corporate restructuring measures through the "protective shield" process under the applicable German laws.

The protective shield process is a management-led administration process that offers a solution for the company in the current context and business environment.

Earlier this week, Dynamatic Technologies had announced that it had entered into a long-term contract with Spirit AeroSystems for manufacturing and delivering components for different aircraft parts.

The company said that its subsidiary, Dynamatic Manufacturing Ltd., will produce multiple parts for commercial and business jet programs at Spirit AeroSystems’ Belfast facility. Spirit has a wing assembly line for the Airbus A220 at the Belfast unit.

Dynamatic Technologies Ltd. is a $168 million company that designs and builds highly engineered products for aerospace, hydraulic, metallurgy and security applications at its design, engineering, and manufacturing facilities in Europe and India.

Shares of Dynamatic Technologies are trading 0.7 percent lower at Rs 2,676.