Nestlé has announced plans to close its confectionery production facility in Timisoara, western Romania, at the end of May.
Local news site Ziarul Financiar reported that the group undertook an analysis of the long-term viability of the facility before taking the 'extremely difficult decision' to close the plant.
The Timisoara facility, which employs 388 people, was acquired in 2000, and produces both confectionery, mainly under the Joe brand, and coffee products. Nestlé also operates a separate regional cost competence centre in Timisoara, which will not be affected by the closure.
The food giant said that it is working with unions to identify areas in which employees affected by the closure can be redeployed.
"We have initiated the closure process, and we are negotiating with the trade unions now," Nestlé officials told Ziarul Financiar.
Brands produced at the Timisoara plant will now be produced in Hungary, the group said.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
