It is downsizing in Austria, where Wollsdorf Leder is laying off 150 of its 371 employees, and is shifting its focus to production in Mexico, where in 2017 the tannery group invested EUR 40 million to build a manufacturing plant. It is a consequence of the European automotive downturn rippling through the supply chain — although its Austrian competitor Boxmark reports no similar issues.
Wollsdorf Leder to lay off 150 workers
“This is a catastrophe”, was the terse comment from Franz Nöhrer, mayor of St. Ruprecht an der Raab, following the news of the layoffs at Wollsdorf Leder (source: Krone). Of the company’s 371 employees, 150 will be made redundant — 130 in production and 20 in administration. Local media report that, according to Karl-Heinz Snobe, regional director of the Austrian equivalent of the employment agency, the cuts are in line with a strategy of relocation, particularly to Mexico.
The network
In addition to its Austrian headquarters, Wollsdorf Leder operates three other manufacturing sites: in Croatia (Varaždin), China (Fuzhou) and Mexico (León). The group employs 1,500 people worldwide and specialises in leather production for the automotive sector (particularly for steering-wheel coverings), as well as for furniture and aviation. The company’s former CEO, Andreas Kindermann, served as president of Cotance from 2018 to 2021.
Competitors
Krone also contacted Boxmark, the Feldbach-based tannery likewise producing leather for the automotive industry. The company states that it has no plans for staff reductions. “Our long-term supply contracts ensure full utilisation of production capacity at both Austrian sites. Therefore, staff reductions are not currently under consideration”.
Photo: Wollsdorf Leder website
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