Schoeller Textil AG announced it will cease manufacturing operations in Sevelen, Switzerland, toward the end of 2025. The company cited in a media release its decision is high labor and energy costs, the strong Swiss franc, and the persistently poor market environment since the pandemic to cover production costs for highly specialized fabrics manufactured in the country.
Schoeller will close its Sevelen factory in stages over 9 to 12 months.
The company is conducting consultations with employee representatives. to find “socially acceptable solutions for the approximately 170 employees, including support in their search for new employment.” The company also plans to provide “voluntary financial help from its employer foundation.”
The Swiss Albers Group and Formosa Taffeta Co. Ltd., Taipei (FTC), each own 50 percent of Schoeller Textil AG, which specializes in manufacturing technical textiles.
The company also reported that its “competitiveness has steadily deteriorated in recent years compared to its global competitors, particularly from Asia and other countries with lower cost structures. Despite all efforts to guard against low demand, including innovation and future-oriented investments, employee short-time work had to be introduced twice in 2023. A turnaround project launched at the beginning of 2024 also failed to stabilize the situation.”
Franz Albers, chairman of the Board of Directors, said, “Accepting the necessity to cease operations in Sevelen was extremely difficult for us. In the past years, we have left no stone unturned to make production in Seleven more competitive. However, the combination of structural disadvantages and weak demand in the outdoor clothing market proved too big an obstacle to return to profitability. In this situation it is of great importance to me that we find good and fair solutions for everyone affected.”
Joachim Kath, CEO, said “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. With a transition period of 9 to 12 months, we will have enough time to implement all the necessary steps.”
The traditional Schoeller brand will continue producing high-tech textiles in Asia in close collaboration with Formosa Taffeta Co. Ltd. The subsidiary Eschler Textil GmbH in Balingen, Germany, is unaffected by these measures.
