High labor costs. Even higher energy costs. The strength of the Swiss franc. The “persistently poor” market since the pandemic.
For Schoeller, these upsets rendered producing Switzerland-made specialized fibers impossible. As such, the 155-year-old textile innovator will shutter its Helvetian headquarters by the end of 2025.
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“Accepting the necessity to cease operations in Sevelen was extremely difficult for us,” said Franz Albers, chairman of the board, in a statement. “In the past years, we have left no stone unturned to make production in Sevelen more competitive.”
Located in Sevelen, Schoeller’s headquarters include production facilities housing its weaving, dyeing, lamination and coating departments as well as the state-of-the-art research, development and testing laboratory. For its 500-plus partners, Schoeller produces more than 6 million meters of Bluesign-approved performance textiles at this mill and its Balingen, Germany, outpost every year.
The company—owned by the Swiss Albers Group and Formosa Taffeta—said its competitiveness against global contenders has “steadily deteriorated” in recent years. The low demand was particularly obvious compared to Asia and other countries offering lower cost structures. Efforts to course-correct ensued, exploring “innovative and future-oriented investments.” But short-time working orders still had to be introduced—twice—in 2023 due to this low demand.
“The combination of structural disadvantages and weak demand in the outdoor clothing market proved too big an obstacle to return to profitability,” Albers said. “In this situation, it is of great importance to me that we find good and fair solutions for everyone affected.”
The system supplier of solution-specific products said 170 employees will be affected by this closure, which is expected to happen in waves during a nine to 12-month period. Consultations with employee representatives will occur to find solutions for these workers, assisting on the job hunt and (potentially) providing voluntary financial support from its employer foundation.
“Our goal is to implement the closure in Sevelen in a gradual and professional manner. In the coming months, the focus will be on properly processing both existing and impending orders, while at the same time finding socially acceptable solutions for all employees,” Joachim Kath, Schoeller’s chief executive officer, said. “With a transition period of nine to 12 months, we will have enough time to implement all the necessary steps.”