The management of AG Cilander expects to have to close the textile refiner at the end of August 2024. She justifies this with the collapse in demand, the high energy and production costs in Switzerland and the strong franc. The locations affected are Herisau, Flawil and Lützelflüh with 190 employees.
The board of directors and management had already begun to question the continuation of the company headquartered in Herisau in 2023, reported punkt4.info. The company is suffering from the noticeable collapse in demand at home and abroad in the second half of 2023, from high energy and production costs in Switzerland and from the strong franc.
“Although all parties involved have fought with utmost commitment, we see no viable path that would ensure the company’s ability to act,” said Board Chairman Rolf Schmid, according to punkt4.info. “The cessation of production and the resulting cessation of AG Cilander’s business activities at the end of August 2024 appears to be unavoidable.”
The closure affects all three locations in Herisau, Flawil and Lützelflüh BE as well as all 190 employees
The company initiated the consultation process on January 25th and is currently developing a social plan. Production will be maintained for as long as possible “so that we can meet the needs of our loyal, long-standing customers,” says CEO Burghard Schneider.
Cilander, founded in 1814, refines clothing and technical textiles. To date, it has produced over 16 million linear meters of textile products annually. It is majority owned by Steinegg AG, which in turn belongs to the Steinegg Foundation in Herisau.