Covestro International SA, based in Fribourg, Switzerland and founded in 1962, will close its doors by the middle of fiscal year 2024. Covestro announced the closure of its Swiss sales office in its financial report for the second quarter of 2023, published on August 1.
The Germany-based polymer manufacturer said the closure is a consequence of its decision to centrally manage its Europe, Middle East, and Africa business from its headquarters in Leverkusen.
“The relocation is not expected to have any effects on the Group’s sales activities or sales,” it said on its financial report. “The main factors in the second quarter of 2023 were a net tax expense of € 29 million and provisions for restructuring of € 14 million,” it added.
Covestro did not say what the future would hold for the nearly 70 workers at the Swiss office. The company’s financial report says that ‘persistently weak demand, driven especially by lower consumer spending… affected Covestro primarily by impacting on the volumes sold and the selling price level’.