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Over recent years Mylar Specialty Films’ Luxembourg facility has faced significantly diminished competitiveness and sustained financial losses due to a combination of continued low demand for PET film in the markets served by this facility and increasing costs. Despite the company’s significant efforts to overcome these challenges, the outlook remains largely unfavorable. Therefore, today, Mylar Specialty Films announces its intent to shut down production in Luxembourg and is fully committed to the information, consultation, and negotiation process around a social plan for impacted employees. This action is expected to impact approximately 95 roles, mostly in production. The company is committed to ensuring an orderly process and salary continuation until the expected closure date, and to supporting the impacted employees and their families during this difficult time.
Due to its specialized capability, there is a fundamental limitation to the products and markets that this facility can fit cost-effectively. In recent years, multiple factors have contributed to the facility suffering sustained financial losses. Despite the company’s significant efforts to mitigate the situation, operating costs have remained too high and the external challenges prevailed. Market conditions have not allowed the company to achieve enough volume to sustain a profitable operation, and the general outlook remains unfavorable.
Therefore, earlier today Mylar Specialty Films met with staff delegation and unions to inform them of the intent to shut down production at the facility and to negotiate a social plan. This action would impact approximately 95 roles, mostly in production.
Mylar Specialty Films is committed to addressing this situation as well as any concerns transparently and over the past months, had regular exchanges the staff delegation and unions. Information and consultation has now resumed and employees were informed of the intent to shut down.
This outcome is by no means a reflection of the quality of work performed by the Luxembourg Mylar team, or their efforts to support the ongoing operations of the facility.
As of now, the company expects the facility to run until mid-2025 and intends to ensure an orderly and safe shut down process. Mylar is committed to treating all impacted employees fairly and with respect, notably by ensuring that all salaries will be paid timely, and by accompanying employees during this difficult period.
The company will continue to serve customers with products manufactured at the facility until the expected cease of production.