Indorama cutting jobs at German tire, automotive yarn plant

Obernburg, Germany – Indorama Ventures is cutting jobs at its tire and automotive yarns manufacturing plant in Obernburg in response to ongoing costs pressure.

The workforce at the German plant is being reduced by 80, from the current 620 employees by the end of the year, the Bangkok-based group recently announced.

The cuts will affect both production and admin/sales functions, according to the Thai group's statement.

“Global competitive pressure in the man-made fibres industry continues,” said
Stefan Braun, managing director of Indorama Ventures at Industrie Center Obernburg.

According to Braun, the cost pressure in the production of individual polyester-based yarns has “increased continuously in recent years.”

“We are, therefore, convinced that we have made the right decision to focus on our core competencies to remain successful in the long-term,” he added.

As part of the move, Indorama will negotiate with employees who will reach retirement age soon and who wish to leave the company early.

Indorama operates synthetic fibre production plants in Europe, Africa, America and the Asia-Pacific regions.

The group has been present in Obernburg since 2014 when it acquired synthetic fibre manufacturer PHP Fibers.