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Trevira Neckelmann moves Danish production to Poland

10 Oct '07

4 min read

On 9.10.2007, about 300 employees at the Silkeborg-based Trevira Neckelmann were in-formed that the production of yarns for textiles, mainly for the European automotive industry, will be transferred to Poland during the next two to three years.

The reasons for this are the high salary rates in Western Europe and increasing competition in Trevira's market. The Global Competence Centre Texture (R & D department) will remain in Silkeborg and, along with the Sales and Customer Service Desk, secures more than 70 jobs there.

"The decision regarding the transfer of production to Poland is regrettable, but inevitable", states director Peder Bækgaard, Trevira Neckelmann A/S, in a comment to the decision.

"Because of the actual development in the market with rapidly increasing competition the Trevira Group has no other choice. Our prime customer is the automotive industry, which increasingly demands supplier's production to take place in LCC-countries (Low Cost Coun-tries). On this background we must acknowledge that the Trevira Neckelmann production in the long run will not be able to survive in Denmark."

Trevira Neckelmann is therefore adding its name to the long list of Danish companies that has been forced to move production to Eastern Europe where the pay rates are much lower than in Denmark.

"The path that we are following right now is simply a matter of survival for the company, that is determined to keep the status as preferred supplier to the automotive industry," Peder Bækgaard states. As a result of the transfer of production, up to 200 employees will have to find new jobs in the next two to three years to come, even though the transfer activities will not start before the second half of year 2008.

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