Strategic redirection of the MoellerGroup

As a result of globalisation and constant market changes, the MoellerGroup 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 MoellerGroup 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 Emmission Law imposes new conditions. Already in 2004 the new water withdrawal fees of Nordrhein-Westfalen created higher costs for the water intensive leather production. However, the nearly 180 year-long tradition of the MoellerGroup in the production of leather will continue. Close examination of the current market situation means that in the future the group will concentrate on the production of high quality leather. The activities of the MoellerGroup 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 MoellerGroup, 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 is one of the most successful suppliers in the area of shoe production. The associated R&D centre assures an 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. The MoellerGroup will focus in the future 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.