French company shuts down cheese factory in Hungary
French-owned Savencia Fromage and Dairy Hungary on Tuesday said it is reorganising its operations in Hungary, shutting down a cheese factory in Répcelak (Northwest Hungary) but further developing a plant in Veszprém (West Hungary).
The company said it is making the changes to ensure business continuity, supply chain security and sustainability. The shutdown will affect around 160 employees, who will be offered jobs in Veszprém or in Kempten, Germany. Those who do not avail of this will be provided a more favourable severance package than stipulated in the law and the company’s collective agreement.
The company said that before the decision to shut the plant was made, all options were examined to increase efficiency. The utilization of the Répcelak plant has been low recently, and the modernization would have required an investment of such magnitude that it was not economically justifiable.
Savencia Fromage and Dairy Hungary, earlier called Pannontej, makes the Medve, Tihany Válogatás, Pannónia and Karaván brands of cheese. Savencia had HUF 23.8bn revenue in Hungary last year, public records show.
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