High energy and raw material costs, coupled with an uncertain and declining demand for textiles – that made Lenzing AG a brake on costs. Fix: The savings package also costs jobs. It is not yet clear how many there will be. The situation is also tense in production. Since the beginning of October, 255 employees have been working with reduced working hours at the factory in Burgenland.
“We are experiencing upheavals in the energy and raw materials markets, which affect the consumer climate,” said Lenzing AG CEO Stephan Sielaff. Because after three quarters the operating result before depreciation fell to 263 million euros, the fiber producer put a saving on the package Reorganization and cost reduction” is already underway: it must save 70 million euros per year. There will also be personnel measures. and how many jobs will be lost as a result will only be known in the spring of 2023.
“Adjusting our capacities in the relatively short term”
The situation in Heiligenkreuz remains tense: the factory in Burgenland currently only produces on one of the three lines. 255 of the 340 employees are on short-time work. Will there also be restrictions in Lenzing? “We gear our capacity to demand in a relatively short period of time. We are currently examining to what extent other lines should be shut down.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
