US-based producer of nonwovens, Polymer Group, Inc. (PGI) is to close its plant in Neunkirchen, Germany, and transfer portions of the business to the company's plant in Cuijk, The Netherlands. Operations at the German plant are expected to be phased out by the end of the year.
Commenting on the decision to consolidate its European operations, CEO Veronica Hagen said, "PGI is focused on ensuring we have the right cost structure to effectively compete in each of our markets. Our operation in Germany is not of sufficient size to support a stand-alone site but the business will remain viable when combined with our existing operation in The Netherlands." She added, "While difficult, these actions are necessary to ensure our long-term competitiveness and ability to position our company for further growth and investment in the region."