(Helmond, 27 October 2015) The global fall in oil and commodity prices has resulted in a slow-down in economic activity in Vlisco Group's African markets. As a result Vlisco Group will fall this year into a loss and is obliged to restructure.
David Suddens, the new CEO, has proposed to the Advisory Board and Workers' Council that cost savings are found by reducing the number of shifts in the factory as a consequence of lower demand and by taking out a layer of management in the commercial functions. Costs will be cut to secure the short term financial viability of the company but essential activities for future development will be maintained. In addition more responsibility will be given to the management teams in Africa to develop their markets.
David Suddens said: "If you deal in African markets you have to accept volatility as well as growth. We need to adapt our costs to the current downturn whilst making sure that Vlisco's strengths in design and manufacturing are preserved."
About Vlisco Group
The Vlisco Group designs, produces and distributes fashion fabrics for the West and Central African market and African consumers in global metropolitan cities. Founded in Helmond, The Netherlands, in 1846, the Vlisco Group and their fabrics have grown into an essential part of African culture, receiving widespread attention from the art, design and fashion worlds. Vlisco Group's brand portfolio consists of 4 brands: Vlisco, Woodin, Uniwax and GTP. The company's head office is located in Helmond as well as the design- and production facilities for the Vlisco brand. For the other brands these facilities are based in Ghana and Ivory Coast.. The Vlisco Group has 8 sales offices in numerous African countries and around 2,700 employees, (900 in The Netherlands and 1800 in Africa) . For more information visit www.vlisco.com