Europen textile manufacturer Trevira, which is controlled by Reliance Netherlands BV, has filed an application with the Augsburg court in in Bavaria, Germany for the commencement of insolvency proceedings with a restructuring plan, Reliance said in press release.
The move follows major efforts by the company to overcome the impact of industrial slowdown in Europe, particularly of the automotive and textile sectors to whom it is an important supplier, the release added.
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, the release noted.
Trevira, a leading manufacturer of high-value branded polyster fibres and filament yarns for the automotive industries, home textiles as well as for technical applications, has appointed a chief restructuring officer as its managing director.
The company has production units in Germany, Denmark, Poland and Belgium. After the acquisition by Reliance Netherlands BV , Trevira improved its' operations and gained in reputation before being severely impacted by the recent global financial crisis resulting in considerable demand contraction in its' principal market segments, the release added.