Cilander expects closure in mid-2024

The management of AG Cilander expects to have to close the Herisau textile finisher at the end of August 2024. The Board of Directors and management began to question the company’s future in 2023, according to a statement. The company is suffering from the noticeable slump in demand in Switzerland and abroad in the second half of 2023, high energy and production costs in Switzerland and the strong Swiss franc.

"Although all parties involved have battled with the utmost commitment to save the company, we see no viable way to ensure its ability to operate," Chairman of the Board of Directors Rolf Schmid is quoted as saying in the statement. "The cessation of production and the resulting discontinuation of AG Cilander's business activities at the end of August 2024 appears to be unavoidable."

The closure affects all three sites in Herisau, Flawil in the canton of St.Gallen and Lützelflüh in the canton of Bern, as well as their 190 employees. The company initiated the consultation process on 25 January and is currently working on a compensation plan. Production will be maintained for as long as possible “so that we can meet the needs of our loyal and long-standing customers”, CEO Burghard Schneider added.

Founded in 1814, Cilander finishes clothing and technical textiles. To date, it has produced over 16 million linear meters of textile products annually. It is majority-owned by Steinegg AG, which belongs to the Steinegg Foundation in Herisau. ce/stk