Trevira Neckelmann moves Danish production to Poland
10 Oct '07
4 min read
A consequence of market development: Trevira Neckelmann is primarily producing yarns for textiles for the automotive industry and has been located in Silkeborg since 1957. The company is a part of the German Trevira Group which three years ago was purchased by the largest private-owned company in India, Reliance Industries Ltd.
As a result of the intensified competition Trevira Neckelmann had negative fiscal results in both 2005 and 2006, and the actual expectations are a zero-result or a limited positive result. This does not alter the need and necessity of transferring the production out of Denmark.
"In 2006 we outsourced a loss-giving production line, invested in new production equipment and optimized our working processes. Even though we are satisfied with the result of these initiatives it is realistically not enough to maintain production here in Denmark," the director adds.
Global Competence Centre Texture in Silkeborg: The Trevira Group has decided to keep its Global Competence Centre Texture in Silkeborg. The competence centre shall continue to support the Group with knowledge and technologi-cal solutions in the field of developing and producing textured yarns.
The Global Competence Centre will remain at the company's present site, where invest-ments amounting to DKK 50 mn (approx. 6.8 mn. euros) will be made in new and modern facilities. These facilities will also hold other functions that will remain in Silkeborg, such as Customer Service Desk and Marketing & Sales.
As a consequence of the transfer the premises in Silkeborg have been sold, and rental agreements have been made regarding facilities for the Global Competence Centre. The buyer is the real estate and developing company Nordicom Udvikling A/S.
Focus on the employees: Peder Bækgaard points out that the transfer of production is intended to be planned in a way that will cause minimum trouble for the employees.
"There is no doubt that the transfer will place some of our employees in a difficult situation, in which we will do everything to help. At the same time it is very important for us to maintain many of our employees until the transfer is complete and therefore, an adequate amount is earmarked for favourable HR-packages with e.g. bonuses and re-education offers," Peder Bækgaard states.
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