Möller Group opt for strategic restructuring22 March 2005
As a result of globalisation and constant market changes, the Möller Group have decided to restructure their business unit Leather. This primarily involves leather production at the tannery in Bielefeld which will be terminated to a large extent. The beamhouse and tannery where raw hides are converted to wet-blue and wet-white will be mainly affected. The worldwide relocation of shoe and leather products manufacturing in recent years has caused overcapacity in Europe. The Möller Group changed in the early seventies to contract-tanning and this innovative concept was adjusted several times to market requirements, the last time in 1998. Today the demand for contract-tanning in Europe is declining. In addition, environmental requirements for sewage water have increased and the Federal Emission Law imposes new conditions. The new water withdrawal fees of Nordrhein-Westfalen, imposed in 2004 had already implied higher costs for the water intensive leather process of leather making. However, the Möller Group's 180 year-long tradition of leather making will continue. Close examination of the current market situation means that in the future the group will focus on the production of high quality leather. The activities of the Möller Group subsidiary Nord Leder GmbH in Neustadt/Glewe in Mecklenburg-Vorpommern will be selectively expanded. With the redirection of this new and efficient plant, based on the longtime competence of the Möller Group, and in co-operation with strategic partners, the management envisions long-term growth. Special emphasis will be placed on co-operation with the Ecco Leather BV in the Netherlands. The Ecco Group tannery in Dongen represents the most sophisticated tanning standards. The Ecco Group are one of the most successful suppliers in the area of shoe production. The associated R&D centre assures innovative leather production at the highest quality level. The common utilisation of complementary resources combined with technical pre-conditions creates a broader base for both company groups. In the future the Möller Group will focus on the production of high-class leather for automotive, upholstery and aircraft. Based on experience, know-how and reliability, this will offer their customers and partners an interesting future with better planning conditions.