Reliance Industries Ltd said on Wednesday its Germany arm Trevira has filed for bankruptcy after it was hit by slowdown in Europe.
"Trevira filed an application with the Augsburg Court in State of Bavaria, Germany, for the commencement of insolvency proceedings with a restructuring plan," RIL said.
The company faced severe demand contraction in its principal market segments due to the global financial crisis.
Trevira manufactures high-value branded polyester fibers and filament yarns for the automotive industries, home textiles as well as for technical applications.
The move follows attempts by the company to overcome the impact of industrial slowdown in Europe, particularly of the automotive and textile sectors to which it is an important supplier.
"European textile manufacturers are currently facing a considerable drop in demand for their products, while the cost of production and employment is increasing and competition from Asian and Eastern European industries is stronger than ever," RIL said.
RIL did not give details of the financial problems at Trevira or the restructuring plan. Trevira has production units in Germany, Denmark, Poland and Belgium.
