Nestlé has announced it is to close its only factory in Romania at the end of May.
The factory, located in Timisoara, western Romania employs 388 and makes Joe Wafers, one of the most popular wafer brands in the country.
Nestlé acquired the plant in 2000 from Romanian entrepreneur Florentin Banu and has an annual production of over 10,000 tons of sweets and coffee. It will continue producing local brands at its factory in Hungary, company officials confirmed.
"The closure of the Timisoara production unit is an extremely difficult decision, taken after thorough analysis and after all alternatives have been implemented. Nestlé operates locally on a market that is experiencing a period of rapid change, characterized by new patterns consumption and labor shortages in a competitive environment. We analyze all options to provide the necessary support to our colleagues. Our priority is to alleviate this change in relation to our employees," Leszek Wacirz, country manager of Nestlé Romania, told local media.
Employees who face redundancy will benefit from compensatory salaries based on their seniority in the company, said Jackie Avery, human resources director of Nestlé Romania.