Reliance Industries's German Unit Goes Bankrupt

The global economic downturn has hit India's most valued company Reliance Industries, forcing it to today to declare as insolvent its German unit Trevira, a specialty polyester manufacturer. Reliance Industries had acquired Trevira five years ago for Rs 440 crore. This acquisition in 2004 had propelled Reliance to the position of the world's largest polyester fiber and yarn producer. The German unit had 1,800 employees as of March 2009 and a turnover of Euro 323 million last year.

Trevira faced severe demand contraction in its principal market segments due to the global financial crisis .Trevira, which was part of German industrial conglomerate Hoechst AG before being acquired by Reliance, manufactures high-value branded polyester fibers and filament yarns or the automotive industries, home textiles as well as for technical applications. Trevira has production units in Germany, Denmark, Poland and Belgium.