Type
Offshoring/Delocalisation
Country
Romania
Region
Nord-Vest; Bihor;
Location of affected unit(s)
Alesd
Sector
Manufacturing
Manufacture Of Material For Textiles, Apparel, Leather And Related Products
Manufacture Of Leather And Related Products
15.2 - Manufacture of footwear
New offshoring locations
Serbia, North Macedonia, Moldova

100 jobs
Number of planned job losses
Job loss
Announcement Date
16 August 2020
Employment effect (start)
16 August 2020
Foreseen end date
31 December 2020

Description

Italian footwear producer Melania has announced plans to close its plant in Alesd (BihorCounty) by the end of 2020. One hundred employees, in production and in administrative positions will be affected. In December 2019, the first stage of the restructuring consisted in reducing the staff, from 400 to 100, by collective dismissal.

The redundancies are taking place due to the increasingly unstable financial situation of the company and minimum wage increases in Romania. The production has been relocated to non-EU countries, namely Serbia, Republic of North Macedonia, Ukraine, the Republic of Moldova or Albania, locations where salaries are lower. The trade union has not provided any public commentary following the announcement made by management.

The company was founded in 1966 and its main markets are Eastern Europe, Western Europe, Russia, North America (Canada), Central America (Mexico) and USA.


Sources

Citation

Eurofound (2020), Melania, Offshoring/Delocalisation in Romania, factsheet number 101797, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/101797.