03 June 2009 12:48 [Source: ICIS news]
LONDON (ICIS news)--Germany-based polyester producer Trevira has filed for the start of insolvency proceedings with a restructuring plan in a local court, its Indian parent company Reliance Industries said on Wednesday.
The company said the filing followed major efforts to overcome the impact of the industrial downturn in ?xml:namespace>
“European textile manufacturers are currently facing a considerable drop in demand for their products, while the cost of production and employment is increasing and competition from Asian and Eastern European industries is stronger than ever,” Reliance said in a filing published on the Bombay stock exchange.
Last month, Trevira appointed lawyer and insolvency expert Elke Bauerle as its new managing director to restructure the company.
Earlier in the month, CEO Uwe Wohner left the company.
Trevira employs a staff of about 1,800 in Europe and has five production sites in four European countries –
Reliance Industries bought the business in 2004 from Deutsche Bank.
Trevira was previously part of Hoechst, the former German chemicals and pharmaceuticals major that later merged with French company Rhone-Poulenc to form Aventis.
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