The restructuring events database contains factsheets with data on large-scale restructuring events reported in the principal national media and company websites in each EU Member State. This database was created in 2002.
Manufacturing Manufacture Of Food And Beverage Manufacture Of Food Products 10.5 - Manufacture of dairy products
100 jobs Number of planned job creations
Announcement Date
16 July 2020
Employment effect (start)
1 September 2020
Foreseen end date
15 December 2020
Description
The Croatia dairy company Meggle Croatia announced that it will phase out its production facility in Osijek by the end of 2020, laying off 160 workers. The restructuring is due lasting business challenges and a series of crises that impacted company's operations - aflatoxins, problems with the Agrokor conglomerate and finally the coronavirus. According to a statement by the Commercial Trade Union of Croatia, this is an unexpected decision.
During the restructuring process, the employer will ensure quality severance packages and social dialogue with workers and relevant bodies. The company explained that over the past 15 years the group had made investments worth HRK 130 million (€17,3 million) in Croatia.
Meggle Croatia is the third-largest dairy company in Croatia.
Update 19/10/2020: The Croatian milk and dairy company Meggle has reached an agreement with the conglomerate Fortenova for its business operations to be acquired by Belje from January 2021 when its production will also restart. The takeover plan envisages the continuation of the relationship with the 282 milk and dairy company's subcontractors and will include the retention of 70% of its workforce of 160 persons. The rest of the employees (48) will be made redundant, while the total cost will reach around HRK 8 million (€ 1.08 million). Trade unions are satisfied because severance payment for these workers is around 25% higher that stipulated by the Labour Act. After the takeover, Meggle is planning to continue to develop its production in Croatia.
*Update 24/12/2020: The Croatian Agency for Protection of Market Competition (AZTN) has issued its permission to Fortenova Group's company Belje Plus to continue with its planned takeover and concentration of the milk and dairy producer Meggle from Osijek. As a result, production in Belje is expected to start sometime in 2021 and will create around 100 new jobs. In accordance with the agreement Belje Plus will acquire Meggle's production in Osijek and its assets.
Eurofound (2020), Meggle, Closure in Croatia, factsheet number 101247, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/101247.
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