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Chinese masks that were sold with the “made in Austria” label: After the great enthusiasm for the Hygiene Austria company, the fiber manufacturer Lenzing is now coming out.
1:46 pm, April 2, 2021
Listed fiber manufacturer Lenzing has left the joint venture with Palmers for mask production, Hygiene Austria. At the end of March, all of Lenzing’s shares were transferred to Palmers, as Lenzing announced on Friday. Lenzing held 50.1 percent and Palmers 49.9 percent of Hygiene Austria. There were “mistakes” in the implementation of the mask project, Lenzing admitted in view of the scandal surrounding Chinese masks with “Made in Austria” advertising.
“Lenzing is characterized by strong values and an internationally recognized governance system and process. In Hygiene Austria, mistakes were made in the implementation“It says in the Lenzing broadcast. The board of directors, in consultation with the supervisory board, will draw appropriate lessons for the future. In the future, a comprehensive investment management system for small projects will also be established.
Lenzing’s annual general meeting will take place on April 14. Lenzing Board of Directors Stephan sielaff, who was tasked with handling the incidents in early March by the supervisory board, recalls the “intensive weeks”: together with Palmers, the core deficiencies were identified and the course of “professional management, excellent quality assurance and good working conditions “.
Accompanied by a corresponding specification sheet for a solid continuation of the business, the two shareholders have agreed to transfer the shares from Lenzing to Palmers. Lenzing initially waives the corresponding purchase price. This, in turn, should allow Palmers to provide the company with additional financial resources, “Lenzing’s broadcast said. If the company does well, Lenzing may still benefit in hindsight, Lenzing’s spokesman for the APA said.
The new beginning of the mask maker should be successful with a new management: Mit Claudia witzemann and Michael Schleiss two external executives were appointed CEO of Hygiene Austria on April 2. The former managing director Tino Wieser discarded.
New temporary work agencies wanted
The new direction of Hygiene Austria was also confirmed by your side. Contracts for personnel services will be put out to tender immediately. Next week you will receive more information from the newly appointed administration, according to APA’s request on Friday.
Other results of the work, according to Lenzing: The FFP2 masks produced in Austria, as well as those obtained in China, were revised again and technically evaluated as perfect in all respects. The CE marking is assured: in a new audit carried out by the Hungarian institute Gépteszt on March 25, the quality of the production and the model were confirmed again according to the information. And personnel services will be put out to tender again: the new management will turn to temporary work agencies with the highest quality standards, he assures in the Lenzing broadcast.
A scandal with a political note
The Wiener Neudorf-based mask maker was founded almost a year ago in the wake of the crown crisis. The two founding companies, Lenzing and Palmers, announced at the time that they had invested “several million euros” and wanted to secure the domestic supply with the production of protective masks and strengthen the location. However, Hygiene Austria has been affected since the beginning of March 2021 as a result of a House search In the course of the investigations of the Economic and Corruption Public Ministry (WKStA) under massive pressure. It is determined by the Organized undeclared work and serious business fraud are suspected. The company then admitted that although the FFP2 masks were advertised as “Made in Austria”, they had bought some in China. In addition, the working conditions of the employees, who are mostly employed through temporary work agencies, were criticized.
The scandal also acquired a political dimension: the family relationship of the director of the foreign ministry. Sebastian Kurz (ÖVP) – she’s on the Palmers board Luca wieser married and related by marriage to the former hygiene manager, Tino Wieser, fueled criticism from the opposition.
In addition to the WKStA, the commercial court will also take up the case: the Consumer Information Association (VKI) is taking action on behalf of the Ministry of Social Affairs against what consumer advocates believe is misleading advertising of FFP2 masks from Hygiene Austria as “Made in Austria” on the front. The Vienna Commercial Court should clarify whether masks purchased in China can be sold as “made in Austria”.
