Brussels -- Recticel bv of the Netherlands announced 10 Jan 2012 that it intends to streamline its flexible foam operations in The Netherlands by closing its comfort foam converting unit in Bladel by mid-2012.
The planned redeployment by the Dutch unit of Belgian foamer Recticel affects 51 employees.
Recticel said that, together with the trade unions, it will seek "the best possible social support measures."
The company said the estimated costs of closure, which will be included in the results of the fourth quarter 2011, will largely be neutralised by the sale of assets.
In its half-year results for fiscal 2011, Recticel pointed out that earnings (EBITDA) in the "very competitive" comfort market declined as "rapidly increasing raw material prices could not yet be fully passed on."
In the third quarter the group also reported difficulties in the comfort foam business, noting lower sales (nine months of 2011: -3.7 percent; third quarter 2011: -2.6 percent). Recticel said these figures were a result of "deteriorating demand in Scandinavia and Spain."
But the group also noted that raw materials prices stabilised in the third quarter.