Trevira, a Germany-based polyester fibre manufacturer acquired by Reliance Industries Ltd (RIL) in 2004, has filed an application in a provincial court in the European country to start insolvency proceedings.
A press release issued here Wednesday by RIL said the application for insolvency proceedings had been filed in the Augsburg court in the state of Bavaria.
"The move follows major efforts by the company to overcome the impact of industrial slowdown in Europe, particularly in the automotive and textile sectors to whom it is an important supplier," the release said.
RIL acquired Trivera in June 2004 for 80 million pounds ($132 million), making the parent company the world's largest fibre and yarn player. It has production units in Germany, Denmark, Poland and Belgium.
"European textile manufacturers are currently facing a considerable drop in demand for their products, while the cost of production and employment is increasing and competition from Asian and Eastern European industries is stronger than ever," it added.
The German subsidiary has also appointed a new chief restructuring officer as its managing director to lead the company through this period.
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