The Swiss industry, already hard hit by the larger-than-life Swiss franc compared with the euro on the wholesale and retail levels, begins to count casualties in domestic production. Christian Eschler AG, the Swiss manufacturer of high-performance fibers and fabrics, has decided to shut down its own plant in Bühler in the canton of Appenzell as well as the one in Münchwilen, Thurgau. Some 75 employees will be affected by the strategic decision. Instead, Eschler wants to create centers of excellence at the locations dedicated to high-end research and development, employing around 15 people.
The decision came along with an intense review of Eschler's portfolio of products. In the future, the company intends to focus on niche products in the sectors of sports, work wear, lingerie and technical textiles. Eschler is dropping activities in which it no longer feels competitive, notably in regard to low-price vendors from the Far East, particularly in the field of circular knits.
According to Philip Schär, currently the company's sales and marketing director, Eschler still produces 70 percent of its goods by value in the Swiss plants mentioned above, while the rest is processed at Eschler's subsidiary in Germany and through a joint venture in Thailand. Schär specifies that some 60 percent of the current Swiss production will be shifted to the German branch, while the rest goes to Thailand, enjoying the proximity of the plant to the brands that finalize their gear in the same East Asian region (more in The Outdoor Industry Compass).
