Savencia Fromage & Dairy Hungary

Type
Closure
Country
Hungary
Region
Dunantul; Nyugat-Dunantul; Zala
Location of affected unit(s)
Zalaegerszeg
Sector
Manufacturing
Manufacture Of Food And Beverage
Manufacture Of Food Products
10.51 - Operation of dairies and cheese making
60 - 83 jobs
Number of planned job losses
Job loss
Announcement Date
20 January 2021
Employment effect (start)
15 April 2021
Foreseen end date
15 July 2021

Description

Savencia Fromage & Dairy Hungary, the Hungarian subsidiary of French dairy conglomerate Savencia Fromage & Dairy, closes one of its cheese plants in Zalaegerszeg by the end of 2021. The closure affects 83 people currently employed in the site.

The decision is part of a reorganisation that also entails the further development of another Hungarian production unit in Veszprém. The latter has become the largest European innovation centre of the company by now, whereas the Zalaegerszeg plant has been underutilised in recent years, due to the drastic decrease in demand for the Emmentaler-type cheese products produced there.

The firm conducted negotiations with the works council and the trade union during the previous two weeks. The layoffs are to be implemented in two phases, the first one in mid-April and the second in mid-July. A few affected employees may continue to work at the other two Hungarian production units of the firm so as to they can reach the retirement age and the necessary number of years of service. Also, the firm will assist employees in seeking new jobs. For this purpose, the firm contacted the employment agency.

Fromage & Dairy Hungary has a solid market position in Hungary and more than one-fourth of its revenue comes from export sales. However, it posted a loss of approximately €3 million in 2019.

Sources

Citation

Eurofound (2021), Savencia Fromage & Dairy Hungary, Closure in Hungary, factsheet number 103195, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/103195.