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Operational turnaround of a textile production facility in Asia for a US client

Case Study


The client was a textile group supported by a US investment fund. They had a factory in Asia with 800 employees and 11,000m2 of production space and generated a turnover of €17m with a negative Ebitda of €1m. The factory had been without a director for two years and had outsourced a significant part of its production to the detriment of internal capacities. The Group had tried unsuccessfully to sell the factory in its current state and wanted to make a final effort to turn around its operation and profitability before deciding whether to sell it or retain it within its industrial network, if the turnaround revealed potential. Atreus was briefed to restore Ebidta to 0, halve the number of indirect employees (from 30% to 15%) and bring outsourced volumes back in-house to restore the factory’s workload.


An initial audit conducted three weeks into the assignment revealed an insufficient structure in terms of resources and industrial processes with wide scope for improvement. A seven-month action plan was defined and immediately implemented. This included actions relating to delivery times, supplier quality, supplier management, production methods (introduction of Lean manufacturing), improvement in skills, working methods and staff motivation. The assignment was made more complicated by a powerful and demanding union. 


In just one month, our interim manager had understood the challenges, proposed an action plan and set to work. Radical transformation of the production methods in the sewing workshop rapidly generated improved productivity with a positive impact on Ebitda of €1.2m: 20% above the initial target. This allowed the factory to be retained within the Group and to become a base for Asian operations.

If you would like to know what Atreus can do for you in a similar situation, get in touch.

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Atreus is the leading interim management provider in Germany and one of the largest in its field in Europe. We solve difficult operational management and transformation problems quickly and reliably. Contact us and find out how we can help you master your situation with management expertise that is available at short notice and that is the perfect fit for you.

Atreus is a co-founder of Globalise – the market’s leading and largest provider of international interim management. Accelerating change and delivering success. Worldwide. Structured as a global group of leading interim management firms, Globalise has the reach to support you in solving your company’s most important issues around the world.

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