The Swiss giant Nestle, one of the biggest players on the local consumer goods market, will close down its only factory in Timisoara, western Romania, where it produces the Joe wafers (Romanian brand).
The information was officially confirmed by the company.
The brands produced in Timisoara will not disappear from the market, the production will be relocated to Hungary.
Nestlé Romania announced on January 10 its intention to start the closure of its production unit in Timişoara by the end of May 2019. The management informed the employees of the intention to close the factory and started the talks with the trade union and the employees to find the best solution for the 388 targeted people, ziuadevest.ro informs.
“The closing down of the Timisoara production unit is an extremely difficult decision, made after thorough analysis and after the implementation of all the alternatives. At the local level, Nestlé operates on a market that is experiencing a period of rapid change, characterized by new patterns of consumption and labor shortages, in a competitive environment. We are analyzing all the options to provide the necessary support to our colleagues. Our priority is to mitigate this change for our employees,” said Leszek Wacirz, Country Manager of Nestlé Romania.
The Timisoara plant was acquired by Nestlé in 2000 and had an annual production of over 10,000 tons of sweets and coffee.
Nestle entered the Romanian market in 1995, currently having about 900 employees in Bucharest and Timisoara, the latter hosts the factory where products such as Joe wafers are manufactured. From Timisoara, Nestlé Romania exports 35% of production to Hungary, the Adriatic countries, Mediterranean countries and, since last year, to Ireland. Last year, Nestle Romania continued to hold first or second position in all categories where the company is present on the domestic market, with 33% soluble coffee, coffee capsules and beverages, 61% of the food for children, 40% of culinary products, 48 % of cereals, 18% of sweets and 14% of pet food. The highest weights in the turnover are held by coffee, baby food, breakfast cereals and culinary products, the same source informs.
The brands are Joe, Nescafe, Maggi and Purina.
Nestle Romania reaffirms its commitment on the Romanian market, will continue the investment in strong brands and in the sustainable development of the overall activity of the company. Nestle will continue its activity with the support of the teams in the central offices in Bucharest, the Regional Cost Competence Centre in Timisoara and of the active sales teams in the country.
Labour Inspectorate conducts checks at Nestle Timisoara
On Friday, right after the announcement made by the company, the Territorial Labour Inspectorate (IMT) Timis has conducted checks at the factory in Timisoara.
One of the inspectors said after the checks that compensatory wages will be granted to employees, plus bonuses.
IMT Timis chief Pavel Kasai said some 900 employees will be laid-off.
“Two inspectors have conducted checks on Friday and did not inform me about the fact that the factory will be closed down. I’ve found out from the press. Everything will be done by the law, the employees have been noticed, will receive compensatory wages, some bonuses. ITM Timis will receive on Monday an official notification. Everything is done according to the collective bargaining agreement. The 388 employees in Timisoara will be laid-off, plus others in Bucharest, overall some 900 employees. I understand the entire company in Romania will be closed down. We are not aware of details from the Swiss owners,” Kasai said.
Timisoara mayor Nicolae Robu: I do not know the explanations, but there will be no catastrophe
“I’m sorry about this retreat. I did not know anything about it. Nobody has told me. I do not know the explanations, but there will be no catastrophe. Fortunately, Timisoara is in full swing. It is a labour shortage and, certainly, those who have been employed there will find other jobs, maybe even better ones,” Nicolae Robu has told Digi24 TV private broadcaster..
“Obviously, it is not good for anyone to lose the job he has been accustomed to, of which he is pleased, but I am holding the fists for those who are in this situation and I tell them to have courage and confidence because in Timisoara they will find jobs, because they know what a work force deficit is. Timisoara has grown enormously in recent years both as population and from all points of view. The population increased through the new Timisoara inhabitants, who have come for the vacant jobs here,” the mayor added.