Mumbai: Reliance Industries Ltd has said that its European textile unit, Trevira, had applied in a German court to start of insolvency proceedings with a restructuring plan.
“The move follows major efforts by the company to overcome the impact of industrial slowdown in Europe particularly of the automotive and textile sectors to whom it is an important supplier,” Reliance said in a statement.
Trevira makes polyester fibres and filament yarns, and reported turnover of €323 million ($459 million) in 2008, data on its website showed.
It has production units in Germany, Denmark, Poland and Belgium, with around 1,800 employees, the website showed.
Reliance Industries acquired Frankfurt-based Trevira for about €80 million in 2004.
Reliance said Trevira was severely impacted by the recent global financial crisis resulting in considerable demand contraction in its’ principal market segment.