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Linz Textil AG, like most companies, is strongly affected by the crown crisis, with the expected “reorganization” of sales markets and supply chains after the crisis. Linz Textile sees more opportunity than risk, board spokesman Friedrich Schopf said yesterday. Joint conference call with the board director, Eveline Jungwirth, and the CEO of Linz Textil GmbH, Otmar Zeindlinger.
There is a rethinking process among many clients in the textile industry, Schopf said. With cooperating partner Lenzing AG as a fiber producer, they have the potential to map a European supply chain and therefore a “new Made in Europe”.
The current situation is extremely different in the five production locations. Production at the Landeck cotton spinning mill runs unrestricted, despite the fact that there is an access point in the Covid 19 spread. The biggest challenge is maintaining production despite employee crown-related failures. The Linz fabric factory is also working at full capacity.
On the other hand, things look less good at the towel maker Vossen. There they have reduced production to a minimum. The online store is highly visited, but only accounts for about 15 percent of sales, Schopf said.
Linz Textil closed the previous year with an expected drop in sales to 92 million euros. In contrast, earnings before interest and taxes (EBIT) nearly tripled to 16.1 million euros, said Jungwirth, chief financial officer. The capital ratio increased from 76 to 88 percent, and the group’s 563 employees had previously been registered to work short-term as a precautionary measure. At 225 that is already the case. There should be no layoffs if possible.
Articles of
Hermann Neumüller
Business editor
