Type
Closure
Country
Czechia
Region
Stredni Cechy; Stredocesky;
Location of affected unit(s)
Bzenec, Dolní Břežany
Sector
Manufacturing
Manufacture Of Food And Beverage
Manufacture Of Food Products
10.3 - Processing and preserving of fruit and vegetables

250 jobs
Number of planned job losses
Job loss
Announcement Date
15 February 2023
Employment effect (start)
1 October 2023
Foreseen end date
31 December 2023

Description

The Norwegian Food Company Orkla will close its two Czech plants in Bzenec, as well as in Panenské Břežany near the Czech capital Prague. Around 250 employees will lose their jobs as a result of the closure. Dismissals are set to begin in the last quarter of 2023, from October onwards, and the production plants are to be closed by the end of 2023. According to the management of Orkla, the reason behind the closure is the increasing cost of operating these two plants and their long-term unprofitability. The employees were informed by Orkla about the layoffs in February of 2023.

The closure of the plants will affect the production of sterilized pickles Znojmia and frozen fruit of Agrimex Vestec, which is a subsidiary of Orkla. The company is the second biggest domestic producer of packaged foods.


Sources

Citation

Eurofound (2023), Orkla, Closure in Czechia, factsheet number 109278, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/109278.