Linz Textile sells Linz (Nanjing) Viscose Yarn to Hong Kong Sateri China Holdings
Linz Textile Holding sold its Linz (Nanjing) Viscose Yarn Co. Ltd. (Viscose Yarn spinning unit) to Hong Kong Sateri China Holdings and will also close down its spinning plant in Linz, Austria
Sateri is operating in the textile business and is one of the largest producers of viscose in China.
The sale was executed in two steps, firstly Sateri takes over a majority holding at the Linz Nanjing, then Satori is authorized to exercise options to complete takeover. The signing of the relevant contracts took place already in March 2016. At the end of May 2016 Linz reports the closing of the transaction at an unknown price.
According to Linz Textile – founded in 1838 (spinning and weaving) the divestment will have no influence on the result of the Linz Textile Group in 2016. With the sale the company is responding to the changing market conditions in China, but Linz Textil is continuing to serve East Asian textile markets.
Already on October 14, 2015 Linz Textile informed the close down of its yarn production at the spinning unit in Linz, provided for June 30, 2016 and production will be idled.
Meanwhile the management has been evaluating possibilities, such as the reduction of the capacity and taking into account a temporary unsatisfactory earning situation to extend the closing down of the spinning activities in Linz to 2017. This should allow that possible new market opportunities – also in consultation with Linz AG – can be made use of. The closing plan for 2017 remains intact.
The weaving activities of the group will remain.
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