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Nestle to close down factory in Romania's Timisoara by end-May

Nestle to close down factory in Romania's Timisoara by end-May Nestle

BUCHAREST (Romania), January 11 (SeeNews) - Nestle Romania plans to close down its factory in Timisoara, western Romania, by the end of May, the company told SeeNews on Friday.

Some 388 people will be affected by the closing of the factory, Nestle Romania said in a statement e-mailed to SeeNews.

"The closure of the Timisoara production unit is an extremely difficult decision, taken after a detailed analysis and after all alternatives have been implemented. Nestle locally operates in a market that is experiencing a period of rapid change, characterized by new patterns of consumption and labour shortages in a competitive environment," Nestle Romania country manager Leszek Wacirz said in the statement.

"We are analyzing all options in order to provide the necessary support to our colleagues. Our priority is to mitigate the effects of this change for our employees," Wacirz said.

The management has informed employees about the closing and has started talks with the unions in order to find the best solution for the affected workers.

The factory in Timisoara was acquired by Nestle in 2000 and has an annual production of over 10,000 tons of sweets and coffee.

The manufacturing of Nestle products will continue in other locations in an attempt to streamline processes and operate more efficiently, so that consumers are not affected, the company said.

The 30 people employed at the Nestle Regional Cost Competence Center in Timisoara , which is Nestle's financial services center,  will not be affected by this decision and will continue to operate in a new location in the city centre.

"We have initiated a broad consultation process with our employees and the trade union to identify the best solutions that we can support our people at this time. We explore all possible ways, from helping to find new jobs or acquiring the necessary skills in re-employment and organizing job fairs at the factory. Employees who will be made redundant will benefit from severance pay according to their length of service in the company," Nestle Romania human resources director, Jackie Avery said.

Nestle reaffirmed its commitment to the Romanian market and said it will continue to invest in brands as well as in the sustainable development of the company's business as a whole.

Nestle stressed that it will continue its activity with the help of the teams at the headquarters in Bucharest and at the Regional Cost Competence Center in Timisoara, as well as through its sales team which is active nationwide.

Nestle entered the Romanian market in 1995. Its portfolio now comprises a wide range of products, such as beverages, sweets, culinary products, infant nutrition as well as animal feed.