Eybl launches new weaving competence centre in Krems

Strengthening of Lower Austrian locations Krems and Gmünd

Krems (pts010/19.03.2003/10:06) After a planning and construction phase of only five months, the Eybl group http://www.eybl-international.com can now begin operations in its new weaving competence centre in Krems. Within a short time, three production halls of 4,300 square metres each have been adapted to become a highly modern weaving centre for the European automotive industry.

Eybl International chairman of the board Johannes M. Elsner said: "We have moved the growth segment of our textile production to Krems, in order to closely cooperate with the Gmünd location, where the equipment for our weaving products has been established, and produce high quality materials for the leading European auto brands. This signals an important adaptation and the long term strengthening of both of our locations in Lower Austria. The proof that we can meet the quality standards of the premium class lies in the fact that clients have cleared the first new products for immediate release."

The new weaving centre in Krems has a highly modern machine park, which in combination with highly trained personnel puts Eybl at the forefront of international competition. The mill is equipped with about 60 Schaft and Jacquard weaving machines that meet the latest technological standards, and has a capacity of about five million metres in the first phase of annual production.

In addition to broad investments in the Krems location, the company began expanding its mill in Gmünd at the end of 2002. This location should also be equipped to meet the demands of international auto suppliers. The weaving materials produced in Krems are refined in Gmünd and then delivered to the auto industry.

First orders for the new weaving centre in Krems and its extended workbench in Gmund include materials for the new Golf A5, a top Volkswagen model scheduled to come onto the market this year. Eybl has also received orders for the new VW Passat, which will appear on the market at the turn of the year 2003/2004.

The new weaving centre in Krems provides jobs for about 100 people. About 60 people work in Gmünd, a factory that nearly shut down in 2002. In total, Eybl's Lower Austrian locations employ up to 700 people in surfaces (the competence centre for knitting is also located in Krems), confection/ interiors, and group holding management.

Eybl has invested over 18 million euros in the upgrading of its competence in Krems/Gmünd. In addition to the new weaving centre, Eybl will begin setting up a group research and product development centre in this location at the end of March. Eybl thereby intends to expand and strengthen its position as leading development partner for the European auto industry.

These investments have been possible because the core shareholders, Hausbanken consortium and the Lower Austrian regional government, have entered a beneficial partnership.

The Eybl group has focused its activities on the production of auto textiles as well as the confectioning of auto seat covers and small cloth and leather parts. Eybl primarily supplies textiles to the German auto industry, including BMW, Mercedes, VW and Audi, as well as the French Renault group.

The company, which produces at nine locations in six European countries, achieved a turnover of about 410m euros in 2002. Eybl employs 3,400 people in Europe. Last year the group reported a significantly positive operating result. A detailed annual report will be released on 26 March 2003.

Aussender:	pts - single press release
Ansprechpartner:	Christine Stiefsohn
Tel.:	+43 / 2732 / 881 220
E-Mail:	christine.stiefsohn@eybl-international.com