RIL's German unit Trevira files for insolvency

Trevira, a German company that had been acquired by Reliance Industries Limited (RIL) has filed an application in a court in Bavaria for the commencement of insolvency proceedings with a restructuring plan.

The company said the move followed major efforts by the company to overcome the impact of the industrial slowdown in Europe, particularly of the automotive and textile sectors to whom it was an important supplier.

Trevira is a leading European manufacturer of high-value branded polyester fibres and filament yarns for the automotive industries, home textiles and technical applications. It has production units in Germany, Denmark, Poland and Belgium.

According to the statement, after it was acquired by Reliance Netherlands BV, Trevira had 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 statement said 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.

Trevira said it had recently appointed a Chief Restructuring Officer as its Managing Director who has many years of experience with a legal firm specialising in restructuring.

NNN