A company under financial strain and restructuration

A company under financial strain and restructuration

Swiss Tex Winterthur (filament yarn technology, BCF, T+I extrusion process lines) a spin-off of Rieter Machinery Works has to face actual financial strain and is thus forced into restructuration

According to a press release and citing only outside negative factors (currencies EUR, USD in relation to CHF, long term postponed deliveries and of two large projects) leading to this precarious situation of tight liquidity and forcing the management to shed-off around 80 of total 91 collaborators. In 2011 the company’s shrinking margins were leading to a high – not specified – loss and the initiated cost reductions and efficiency program were not able to offset this situation. The restructuration aims to keep only a few profitable activities (spare parts, retrofitting of existing machinery, to get financially reorganised and to keep the company afloat. The company will work with authorities in order to facilitate the situation of the people to leave the company. The future is not settled yet but management and board of directors hope to find ways back to manufacture machinery again, but they don’t see Switzerland as a future location for that purpose, however they consider as manufacturing site a location in the Euro Zone.

www.swisstex.ch


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