Type
Offshoring/Delocalisation
Country
Latvia
Region
Latvija; Riga;
Location of affected unit(s)
Riga
Sector
Manufacturing
Manufacture Of Food And Beverage
Manufacture Of Beverages
11.05 - Manufacture of beer
New offshoring locations
Lithuania, Estonia

59 jobs
Number of planned job losses
Job loss
Announcement Date
3 October 2013
Employment effect (start)
3 October 2013
Foreseen end date
3 April 2014

Description

Latvian brewery Aldaris, a Carlsberg Group company, is to cut 59 jobs in Riga. As announced, Aldaris will now produce only exclusive beer brands in Latvia, moving part of its activities to Carlsberg Group companies in Lithuania and Estonia.

Aldaris now employs 270 workers, and 59 workers will be laid off in six months. Aldaris will pay them compensation and provide them social support and training opportunities, which will cost the company more than LVL 1 million (EUR 1.42 million) in total. Aldaris trade union's head Inga Ozola said that the agreement on compensation payments was in accordance with the union's demands. On 3 October 2013 company's trade union leader Inga Ozola informed mass media that employees laid off by the Aldaris will fill job openings at other large companies, like Rigas dzirnavnieks, Laima, Spilva and Olainfarm.

As the result of reorganization, only beer brands with high added value will be produced in Riga. Aldaris has invested LVL 2.1 million (EUR 2.99 million) in the company's historic production facility and it now has the most up-to-date production equipment in the Baltics. Aldaris CEO Veli Pekka Tennila told mass media that concentrating on making exclusive products with high added value will help Aldaris to return to profit and restore the company's competitiveness.


Sources

  • 3 October 2013: Delfi
  • 3 October 2013: baltic-course
  • 3 October 2013: Diena

Citation

Eurofound (2013), Aldaris, Offshoring/Delocalisation in Latvia, factsheet number 75933, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/75933.