Lustro-Lenzing GmbH & Co KG (Leidern 31, A-4850 Timelkam) declared bankruptcy at the Wels County Court on August 31. The company has suffered from continuous liquidity problems, due to poor business. Their hopes for a good market acceptance for their new PET plastic film products have not been fulfilled, according to Lustro-Lenzing. The company employed 28 workers at its Timelkam site and had an annual turnover of about AusSch 100m.

An American company, Lustro Plastics Co (Evanstone, Illionis), who claims to be the largest producer of PET sheets and films in the world, is Lustro-Lenzing's majority shareholder and operative manager. Lenzing AG (A-4860 Lenzing) is only the financial partner according to a press release. The majority US shareholder, Lustro Plastics, announced its intention to withdraw from the Austrian company in Spring 1995. Lenzing AG supported Lustro-Lenzing management's survival plan for the company, and negotiations were held with more than 15 interested parties. As it was not possible to find a viable concept, Lustro-Lenzing's management have had no alternative but to declare bankruptcy.

READER SERVICE: Comprehensive information dossier (German/English) Lustro-Lenzing: PIE-No. 37211.