The firm said it would temporarily lay-off another 51 ‘highly-qualified’ workers and re-employ them as soon as conditions improved.

Wollsdorf had closed its plant in Wilhelmsburg in lower Austria, laying off its 58 workers, and put all other employees on part-time working hours back in January.

Andreas Kindermann, ceo, said the firm had to ‘take additional decisive steps to deal with the international crisis in the car industry. Our decision follows long and positive talks with the trade union. Part-time work is not the answer to our problems. We will work with the social partners on a social plan to cushion the impact of the lay-offs on those affected.’

Wollsdorf Leather is a specialist in the areas of car, furniture, aircraft, boot and clothing leather around the world. Their customers include some of the worlds leading motor manufacturers and airlines.